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Question: Defects in nuclear missile housing parts. The technique of multivariable testing (MVT) was discussed in the Journal of the Reliability Analysis Center (First Quarter, 2004). MVT was shown to improve the quality of carbon-foam rings used in nuclear missile housings. The rings are produced via a casting process that involves mixing ingredients, oven curing, and carving the finished part. One type of defect analyzed was the number y of black streaks in the manufactured ring. Two variables found to impact the number of defects were turntable speed (revolutions per minute),x1, and cutting-blade position (inches from center), x2.

  1. The researchers discovered “an interaction between blade position and turntable speed.” Hypothesize a regression model for E(y) that incorporates this interaction.
  2. The researchers reported a positive linear relationship between number of defects (y) and turntable speed (x1)but found that the slope of the relationship was much steeper for lower values of cutting-blade position (x2). What does this imply about the interaction term in the model, part a? Explain.

Short Answer

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Answer

  1. A regression model for E(y) with x1 and x2 as functions while there is an interaction amongst the variable can be written asEy=β0+β1x1+β2x2+β3x1x2
  2. Since for lower value of cutting blade position the relationship between y and x2 is much steeper and there is a positive relationship between y and this means that for lower values of x1 and x2 there is some relationship between x1 and x2 as the lines will interact at lower values of x1 and x2 .

Step by step solution

01

Definition

Multivariate testing is technique used for testing a hypothesis in which multiple variables are modified. This testing is used to determine which combination of variations performs well among all the possible combinations

02

Regression model for E(y)

b.

Since the researchers have observed an interaction amongst the blade position and the turntable speed, a new variable needs to be added in the model to represent this interaction in the model. A regression model for E(y) with x1 and x2 as functions while there is an interaction amongst the variable which can be written as Ey=β0+β1x1+β2x2+β3x1x2.

The hypothesis is that the rings are being produced via a casting process that involves mixing ingredients, oven curing, and carving the finished part, where one type of defect analyzed was the number y of black streaks in the manufactured ring and the two variables found to impact the number of defects were turntable speed (revolutions per minute),x1 and cutting-blade position (inches from center), x2.Therefore, the null and the alternative hypothesis are:H0:β0=β1=0

and At least one of the βshould be zero respectively.

03

Interpretation of the interaction term

b.

Since for lower value of cutting blade position the relationship between y and x2 is much steeper and there is a positive relationship between y and this means that for lower values of x1 and x2 there is some relationship between x1 and x2 as the lines will interact at lower values of x1 and x2 .

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Most popular questions from this chapter

Service workers and customer relations. A study in Industrial Marketing Management (February 2016) investigated the impact of service workers’ (e.g., waiters and waitresses) personal resources on the quality of the firm’s relationship with customers. The study focused on four types of personal resources: flexibility in dealing with customers(x1), service worker reputation(x2), empathy for the customer(x3), and service worker’s task alignment(x4). A multiple regression model was employed used to relate these four independent variables to relationship quality (y). Data were collected for n = 220 customers who had recent dealings with a service worker. (All variables were measured on a quantitative scale, based on responses to a questionnaire.)

a) Write a first-order model for E(y) as a function of the four independent variables. Refer to part

Which β coefficient measures the effect of flexibility(x1)on relationship quality (y), independently of the other

b) independent variables in the model?

c) Repeat part b for reputation(x2), empathy(x3), and task alignment(x4).

d) The researchers theorize that task alignment(x4)“moderates” the effect of each of the other x’s on relationship quality (y) — that is, the impact of eachx, x1,x2, orx3on y depends on(x4). Write an interaction model for E(y) that matches the researchers’ theory.

e) Refer to part d. What null hypothesis would you test to determine if the effect of flexibility(x1)on relationship quality (y) depends on task alignment(x4)?

f) Repeat part e for the effect of reputation(x2)and the effect of empathy(x3).

g) None of the t-tests for interaction were found to be “statistically significant”. Given these results, the researchers concluded that their theory was not supported. Do you agree?

Suppose you fit the quadratic model E(y)=β0+β1x+β2x2to a set of n = 20 data points and found R2=0.91, SSyy=29.94, and SSE = 2.63.

a. Is there sufficient evidence to indicate that the model contributes information for predicting y? Test using a = .05.

b. What null and alternative hypotheses would you test to determine whether upward curvature exists?

c. What null and alternative hypotheses would you test to determine whether downward curvature exists?

Suppose you fit the regression model Ey=β0+β1x1+β2x2+β3x22+β4x1x2+β5x1x222 to n = 35 data points and wish to test the null hypothesis H0:β4=β5=0

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  2. Explain in detail how to compute the F-statistic needed to test the null hypothesis.

  3. What are the numerator and denominator degrees of freedom associated with the F-statistic in part b?

  4. Give the rejection region for the test if α = .05.

The first-order model E(y)=β0+β1x1was fit to n = 19 data points. A residual plot for the model is provided below. Is the need for a quadratic term in the model evident from the residual plot? Explain.


Question: Risk management performance. An article in the International Journal of Production Economics (Vol. 171, 2016) investigated the factors associated with a firm’s supply chain risk management performance (y). Five potential independent variables (all measured quantitatively) were considered: (1) firm size, (2) supplier orientation, (3) supplier dependency, (4) customer orientation, and (5) systemic purchasing. Consider running a stepwise regression to find the best subset of predictors for risk management performance.

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e. Through the first 4 steps of the stepwise regression, determine the total number of t-tests performed. Assuming each test uses an a = .05 level of significance, give an estimate of the probability of at least one Type I error in the stepwise regression.

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