Business

CHAPTER 14

14.1 (a) Holding constant the effect of X2, for each increase of one unit in X1, the response variable Y is estimated to increase a mean of 5 units. Holding constant the effect of X1, for each increase of one unit in X2, the response variable Y is estimated to increase an average of 3 units.

(b) The Y-intercept 10 is the estimate of the mean value of Y if X1 and X2 are both 0.

14.2 (a) Holding constant the effect of X2, for each increase of one unit in X1, the response variable Y is estimated to decrease an average of 2 units. Holding constant the effect of X1, for each increase of one unit in X2, the response variable Y is estimated to increase an average of 7 units.

(b) The Y-intercept 50 is the estimate of the mean value of Y if X1 and X2 are both 0.

14.3 (a) [pic]

(b) For a given measurement of the change in impact properties over time, each increase of one unit in forefoot impact absorbing capability is estimated to result in a mean increase in the long-term ability to absorb shock of 0.79116 units. For a given forefoot impact absorbing capability, each increase of one unit in measurement of the change in impact properties over time is estimated to result in a mean increase in the long-term ability to absorb shock of 0.60484 units.

14.4 (a) [pic]

(b) For a given number of orders, each increase of $1,000 in sales is estimated to result in a mean increase in distribution cost of $47.114. For a given amount of sales, each increase of one order is estimated to result in a mean increase in distribution cost of $11.95.

(c) The interpretation of b0 has no practical meaning here because it would have been the estimated mean distribution cost when there were no sales and no orders.

(d) [pic] or $69,878

(e) [pic]

(f) [pic]

(g) Since there is much more variation in predicting an individual value than in estimating a mean value, a...