The manager of the Medicine Hat police department motor pool wants to develop a forecast model for

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The manager of the Medicine Hat police department motor pool wants to develop a forecast model for annual maintenance on police cars based on mileage in the past year and age of the cars. The following data have been collected for eight different cars:


Car Age Maintenance Cost ($) Km Driven (years) $1120 14,320 15,100 1610 1545 17,415 9370 3 900 7230 650 12,045 1500 8100


a. Using Excel, develop a multiple regression equation for these data.
b. What is the coefficient of determination for this regression equation?
c. Forecast the annual maintenance cost for a police car that is four years old and will be driven 10,000 km in one year.

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Operations Management Creating Value Along the Supply Chain

ISBN: 978-1118301173

1st Canadian Edition

Authors: Roberta S. Russell, Bernard W. Taylor, Ignacio Castillo, Navneet Vidyarthi

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