A statistical program is recommended.

Jensen Tire & Auto is in the process of deciding whether to purchase a maintenance contract for its new computer wheel alignment and balancing machine. Managers feel that maintenance expense should be related to usage, and they collected the following information on weekly usage (hours) and annual maintenance expense (in hundreds of dollars).

Weekly Usage (hours)	Annual Maintenance Expense
13	17.0
10	22.0
20	30.0
28	37.0
32	47.0
17	30.5
24	32.5
31	39.0
40	51.5
38	40.0

(a) Test the significance of the relationship in part (a) at a 0.05 level of significance. (Use the F test.)

State the null and alternative hypotheses.

H₀: ₁ 0 H_a: ₁ = 0

H₀: ₀ = 0 H_a: ₀ 0

H₀: ₁ 0 H_a: ₁ < 0

H₀: ₁ = 0 H_a: ₁ 0

H₀: ₀ 0 H_a: ₀ = 0

(b) Jensen expects to use the new machine 29 hours per week. Develop a 95% prediction interval for the company's annual maintenance expense (in hundreds of dollars). (Round your answers to two decimal places.)

$............... hundred to $............ hundred

(c) If the maintenance contract costs $3,000 per year, would you recommend purchasing it? Why or why not? (Round your answer to two decimal places.)

The expected expense of a machine being used 29 hours per week is $........... hundred. Since this expected expense is (greater, less) than the cost of the maintenance contract, the maintenance contract ( is , is not ) advisable.