To understand Q32 in chapter 13, you must understand the example on page 560
Number 32 is "identical" to the text problem described on page 560. The difference is
that in 32 you are not given numbers; you are asked to develop the model in
mathematical abstraction. Let's examine similarities (use table 13.6):
Text example:
Has dependent variable (Y) which is repair time.
Q32:
has dependent variable Y
Text example:
Has a quanTitative variable (X1) which is months since last service.
Q32
: has independent variable X1 which is quanTitative
Text example
: Has a quaLitative variable (Rapair Type) which has two levels. Since it
has 2 levels, k1 rule results in 21=1. So, we know only ONE independent variable is
needed to code Repair Type. Authors created a second independent variable (X2), and
coded it as:
X2 = 0 (if mechanical)
X2 = 1 (if electrical)
To see how the coding was done, compare column 3 in tables 13.5 and 13.6.
Q32:
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 Spring '08
 Nabavi
 Variance, Errors and residuals in statistics, Rapair Type

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