James Trott, the manager the fictitious Blue Line Trucking Company, wants to develop a forecasting model to predict the maintenance expenditures on the company€™s trucks. The manager believes that a truck€™s maintenance expenditures are closely related to the age of the trucks and the number of miles driven. He collected the data on these three variables for 10 different trucks, and they are given in the following table:

1. Develop a multiple regression equation for this problem using Excel.

2. Interpret the meaning of the coefficients of age of the truck and miles driven in the Excel output.

3. Forecast the maintenance cost if the age of the truck is 7 years and the number of miles driven is 32,300.

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Maintenance Cost (in U.S. dollars) Age of the Truck (in years) Number of Miles Driven 15,200 1230 2480 22.520 18,945 2320 1080 12,405 1042 4 13,897 17,235 2260 11,648 970 10 35,985 4570 37,790 5780 6,400 350