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Question: Highway crash data analysis. Researchers at Montana State University have written a tutorial on an empiricalmethod for analyzing before and after highway crashdata (Montana Department of Transportation, ResearchReport, May 2004). The initial step in the methodologyis to develop a Safety Performance Function (SPF)—amathematical model that estimates crash occurrence fora given roadway segment. Using data collected for over100 roadway segments, the researchers fit the model, , where y = number ofcrashes per 3 years, roadway length (miles), and (number of vehicles). The results are shown in the following tables.

a. Give the least squares prediction equation for the interstate highway model.

b. Give practical interpretations of theβ1 estimates, part a.

c. Refer to part a. Find a 99% confidence interval forβ1 and interpret the result.

d. Refer to part a. Find a 99% confidence interval forβ2 and interpret the result.

e. Repeat parts a–d for the non-interstate highway model.

f. Write a first-order model for E(y) as a function ofx1and x2 that allows the slopes to differ dependingon whether the roadway segment is Interstate ornon-interstate. [Hint: Create a dummy variable forInterstate/non-interstate.]

Short Answer

Expert verified

Ey=β0+β1x1+β2x2+β3x3Answer

a. The least-square prediction equation for the interstate highway model isEy=1.81231+0.10875x1+0.00017x2.

b. The interceptβ0value in the least square prediction equation for the interstate model is 1.81231.They-intercept or the value of E(y) when x1 and x2 are zero.is 0.10875 which is positive indicating a positive relationship between y andand since the value is less than 1 the slope of the line would be flatter.value is 0.00017 which is a positive indicating positive relation between y andand since the value is near zero the line will be flatter.

c. The 99% confidence interval forβ1is (-8.89373, 9.11123).

d. The 99% confidence interval for β2is (-13.58206, 13.5824).

e. For the non-interstate highway, the least square prediction equation for the interstate highway model would be Ey=1.20785+0.06343x1+0.00056x2.The interpretation of value in the least square prediction equation for the interstate model β1is 1.20785. This represents the y-intercept or the value of E(y) when x1 and are zero. β2value is 0.06343 which is positive indicating a positive relationship between y and and since the value is less than 1 the slope of the line would be flatter. value is 0.00056 which is a positive indicating positive relation between y and and since the value is near zero the line will be flatter. Confidence intervals - A 99% confidence interval for β1is (-9.12224, 9.2491) and a 99% confidence interval for β2 is (-12.71806, 12.71918).

f. A first-order model for E(y) as a function of and which also represents whether the roadway segment is interstate or non-interstate can be written as Ey=β0+β1x1+β2x2+β3x3.

Step by step solution

01

Given Information

Let y is the number of crashes per 3 years, x1= roadway length (in miles), and x2= AADT (average annual daily traffic).

02

Least square prediction equation

The least-square prediction equation for the interstate highway model is.

Ey=1.81231+0.10875x1+0.00017x2

03

 Step 3: Interpretation for β

Beta values helps in explaining the effect of independent variable, x1 and x2 on the dependent variable, y. β0 value in the least square prediction equation for the interstate model is 1.81231. The y-intercept or the value of E(y) when and are zero. A β1value is 0.10875 which is positive indicating a positive relationship between y and and since the value is less than 1 the slope of the line would be flatter.β2 value is 0.00017 which is positive indicating positive relation between y and and since the value is near to zero the line will be flatter.

04

99%  confidence interval for β1 

A 99%confidence interval forcan be found asβ^1±t0.005×t-value

That is,0.10875±2.617×3.44.

The 99% confidence interval forβ1 is (-8.89373, 9.11123).

05

 Step 5: A  99% confidence interval for  β2

A 99%confidence interval forcan be found asβ^2±t0.005×t-value

That is,0.00017±2.617×5.19.

A 99% confidence interval forβ2 is (-13.58206, 13.5824).

06

For non-interstate highway

Least square prediction equation:Ey=1.20785+0.06343x1+0.00056x2

The least-square prediction equation for the interstate highway model would be.

Interpretation for β:

The β0value in the least square prediction equation for the interstate model is 1.20785. This represents the y-intercept or the value of E(y) when and are zero. The β1 value is 0.06343 which is positive indicating a positive relationship between y and x1 , since the value is less than 1 the slope of the line would be flatter. The β2value is 0.00056 which is a positive indicating positive relation between y and x2 , since the value is near zero the line will be flatter.

A 99% confidence interval for β1:

A 99%confidence interval forβ1can be found as

That is,

A 99% confidence interval forβ1is (-9.12224, 9.2491).

A 99% confidence interval forβ2:

A 99%confidence interval forcan be found as

That is,

A 99% confidence interval for is (-12.71806, 12.71918).

07

 Step 7: First-order model for E(y)

A first-order model for E(y) as a function of and which also represents whether the roadway segment is interstate or non-interstate can be written as

Ey=β0+β1x1+β2x2+β3x3

Where,

x1=roadwaylength milesx2=averageannualdailytrafficnumberofvehiclesx3=1,iftheroadwaysegmentisinterstate=0,iftheroadwaysegmentisnon-interstate

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