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A study was conducted on automobile engines to examine the relationship between engine speed measured in revolutions per minute (RPM) and engine torque with the goal of predicting engine torque.
a. Construct a scatter plot for RPM and torque.
b. Fit a quadratic regression model and state the quadratic regression equation.
c. Predict the mean torque for an RPM of 3,000.
d. Perform a residual analysis on the results and determine whether the regression assumptions are valid.
e. At the 0.05 level of significance, is there a significant quadratic relationship between torque and RPM?
f. At the 0.05 level of significance, determine whether the quadratic model is a better fit than the linear model.
g. Interpret the meaning of the coefficient of multiple determination.
h. Compute the adjusted .
i. What conclusions can you reach concerning the relationship between RPM and torque?
The accompanying graph depicts data from the United States Bureau of Labor Statistics on the average price of an airline ticket in the United States from 1975 to 1985, adjusted to account for inflation (the general increase in the prices of all goods over time). The United States Airline Deregulation Act of 1978 removed the price floor on airline fares and gave airlines more flexibility to offer new routes. a. Based on the data on airline ticket prices in the diagram, do you believe the price floor in place prior to 1978 was binding or nonbinding? Do you believe it was set above or below the equilibrium price? Create a supply and demand diagram that depicts the location of the price floor that existed prior to 1978 in relation to the equilibrium price. b. Most economists agree that the Airline Deregulation Act reduced the average airline ticket price per mile travelled. How do you reconcile that point of view with the diagram?