# Question

The regional transit authority for a major metropolitan area wants to determine whether there is any relationship between the age of a bus and the annual maintenance cost. A sample of 10 buses resulted in the following data.

Age of Bus (years) Maintenance Cost ($)

1 ............. 350

2 ............. 370

2 ............. 480

2 ............. 520

2 ............. 590

3 ............. 550

4 ............. 750

4 ............. 800

5 ............. 790

5 ............. 950

a. Develop the least squares estimated regression equation.

b. Test to see whether the two variables are significantly related with α = .05.

c. Did the least squares line provide a good fit to the observed data? Explain.

d. Develop a 95% prediction interval for the maintenance cost for a specific bus that is 4 years old.

Age of Bus (years) Maintenance Cost ($)

1 ............. 350

2 ............. 370

2 ............. 480

2 ............. 520

2 ............. 590

3 ............. 550

4 ............. 750

4 ............. 800

5 ............. 790

5 ............. 950

a. Develop the least squares estimated regression equation.

b. Test to see whether the two variables are significantly related with α = .05.

c. Did the least squares line provide a good fit to the observed data? Explain.

d. Develop a 95% prediction interval for the maintenance cost for a specific bus that is 4 years old.

## Answer to relevant Questions

Reuters reported the market beta for Xerox was 1.22 (Reuter’s website, January 30, 2009). Market betas for individual stocks are determined by simple linear regression. For each stock, the dependent variable is its ...1. Develop numerical summaries of the data.2. Using overall score as the dependent variable, develop three scatter diagrams, one using price as the independent variable, one using the number of megapixels as the ...In exercise 1, the following estimated regression equation based on 10 observations was presented.y = 29.1270 + .5906x1 + .4980x2a. Develop a point estimate of the mean value of y when x1 = 180 and x2 = 310.b. Develop a ...In exercise 6, data were given on the average number of passing yards per attempt (Yds/Att), the number of interceptions thrown per attempt (Int/Att), and the percentage of games won (Win%) for a random sample of 16 National ...In exercise 5, the owner of Showtime Movie Theaters, Inc., used multiple regression analysis to predict weekly gross revenue (y) as a function of television advertising (x1) and newspaper advertising (x2). The estimated ...Post your question

0