Question: 6.11.1. Draper and Smith (1966, p. 41) considered data on the relationship between the age of truck tractors (in years) and the cost (in dollars)
6.11.1. Draper and Smith (1966, p. 41) considered data on the relationship between the age of truck tractors (in years) and the cost (in dollars) of maintaining them over a six-month period. The data are given in Table 6.8. Plot cost versus age and fit a regression of cost on age. Give 95% confidence intervals for the slope and intercept. Give a 99% confidence interval for the mean cost of maintaining tractors that are 2.5 years old. Give a 99% prediction interval for the cost of maintaining a particular tractor that is 2.5 years old.
Reviewing the plot of the data, how much faith should be placed in these estimates for tractors that are 2.5 years old?
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