Fit the first order model to the data

Reference no: EM131415750

Purchasing a service contract. The manager of a retail appliance store wants to model the proportion of appliance owners who decide to purchase a service contract for a specific major appliance. Since the manager believes that the proportion y decreases with age x of the appliance (in years), he will fit the first-order model

E(y) = β₀ + β₁x

A sample of 50 purchasers of new appliances are contacted about the possibility of purchasing a service contract. Fifty owners of 1-year-old machines and 50 owners each of 2-, 3-, and 4-yearold machines are also contacted. One year later, another survey is conducted in a similar manner. The proportion y of owners deciding to purchase the service policy is shown in the table.

(a) Fit the first-order model to the data.

(b) Calculate the residuals and construct a residual plot versus y^.

(d) Explain how you could stabilize the variances.

(e) Refit the model using the appropriate variance-stabilizing transformation. Plot the residuals for the transformed model and compare to the plot obtained in part b. Does the assumption of homoscedasticity appear to be satisfied?

Reference no: EM131415750

Questions Cloud

Which principle of accounting is being violated : The scheme was not complicated: the company's financial officers recorded routine maintenance expenses totaling $3.9 billion as capital expenditures, which can be written off over decades rather than booked as immediate expenses."

Couchsurfing international-founding team of fenton : How would you describe the founding team of Fenton, Hoffer, and Le Tuan? Is it a balanced team? What does each member bring to the business? Can you see gaps in their skill sets and capabilities that should be adjusted for in some way?

What did you learn from this ted talk that you can apply : Illustrate your understanding of why this video is relevant to the course by reflecting on and reacting to the content. How does the topic of this activity relate to your personal and professional life? What did you learn from this TED Talk that y..

State the reason why we prefer unit x interval or unit y : State the reason why we prefer unit x interval or unit y interval while scan converting various geometric forms. (b) Implement DDA algorithm to compute pixels along the line AB from A (0,0 ) to B (-5, -5 ). Consider a parallel projection with the pla..

Fit the first order model to the data : Fit the first-order model to the data.- Calculate the residuals and construct a residual plot versus y^.- What does the plot from part b suggest about the variance of y?

Controlling a project requires analyzing efforts : Controlling a project requires analyzing efforts and providing reports that provide status of aspects of the project. Exception reports are noteworthy across the list of reports. Define exception report? Note who exception reports are written for? Ho..

Calculate the properties of complex periodic waves : Calculate the properties of complex periodic waves - Determine An expression for the current flowing in the circuit.

What are the basic elements or components of crime : What are the basic elements or components of crime in general? How does the concept of strict liability interplay with the mens rea requirement? What are your thoughts on the additional elements of crime: causation, identifiable harm, legality, an..

How to relax and to self-regulate some bodily states : Primary appraisal refers to the stage in emotional adjustment during which. is a good way to use physiological responses to help train people in how to relax and to self-regulate some bodily states

User Account

All Pages