Refer to Table 1 . Use quadratic regression to find the best model of the form y = a x 2 + b x + c for boat speed y (in miles per hour) as a function of engine speed x (in revolutions per minute). Estimate the boat speed (in miles per hour, to one decimal place) at an engine speed of 3 , 400 rpm.
Refer to Table 1 . Use quadratic regression to find the best model of the form y = a x 2 + b x + c for boat speed y (in miles per hour) as a function of engine speed x (in revolutions per minute). Estimate the boat speed (in miles per hour, to one decimal place) at an engine speed of 3 , 400 rpm.
Solution Summary: The author calculates the best model of the form y=ax2+bx+c by using quadratic regression.
Refer to Table
1
. Use quadratic regression to find the best model of the form
y
=
a
x
2
+
b
x
+
c
for boat speed
y
(in miles per hour) as a function of engine speed
x
(in revolutions per minute). Estimate the boat speed (in miles per hour, to one decimal place) at an engine speed of
3
,
400
rpm.
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The graph below shows the U.S. federal expenses for 2012.
A) estimate the fraction of the total expenses that were spent on Medicare. Write your answer as the
closest fraction whose denominator is 100.
B) estimate the fraction of the total expenses that were spent on Medicare and Medicaid. Write your
answer as the closest fraction, whose denominator is 100.
Starting with the finished version of Example 6.2, attached, change the decision criterion to "maximize expected utility," using an exponential utility function with risk tolerance $5,000,000. Display certainty equivalents on the tree.
a. Keep doubling the risk tolerance until the company's best strategy is the same as with the EMV criterion—continue with development and then market if successful.
The risk tolerance must reach $ ____________ before the risk averse company acts the same as the EMV-maximizing company.
b. With a risk tolerance of $320,000,000, the company views the optimal strategy as equivalent to receiving a sure $____________ , even though the EMV from the original strategy (with no risk tolerance) is $ ___________ .
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