Jensen Tire & Auto is 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). Annual Weekly Usage (hours) 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

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.2: Representing Data
Problem 22PFA
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answer part e please
Jensen Tire & Auto is 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
Transcribed Image Text:Jensen Tire & Auto is 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
(e) If the maintenance contract costs $3,100 per year, would you recommend purchasing it? Why or why not? (Round your answers to two
decimal places.)
The mean weekly usage in our sample is 25.3 hours per week. The expected expense of a machine being used 25.3 hours per week is $
than the cost of the maintenance contract, the maintenance
X hundred. Since this expected expense is greater
contract is
advisable.
Need Heln?
Transcribed Image Text:(e) If the maintenance contract costs $3,100 per year, would you recommend purchasing it? Why or why not? (Round your answers to two decimal places.) The mean weekly usage in our sample is 25.3 hours per week. The expected expense of a machine being used 25.3 hours per week is $ than the cost of the maintenance contract, the maintenance X hundred. Since this expected expense is greater contract is advisable. Need Heln?
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