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 maintenanceexpense should be related to usage, and they collected the following information on weekly usage (hours) and annual maintenance expense (in hundreds of dollars).AnnualMaintenanceExpenseWeeklyUsage(hours)1617132223303137354720312733343943524140a. Develop the estimated regression equation that relates annual maintenance expense (in hundreds of dollars) to weekly usage hours (to 3 decimals).Expense =*+Weekly Usageb. Test the significance of the relationship in part (a) at a 0.05 level of significance.Compute the value of the F test statistic (to 2 decimals).The p value is less than 0.01What is your conclusion?Conclude that there is a significant relationship between expense and weekly usagec. Jensen expects the new machine to be used 30 hours per week. What is the expected annual maintenance expense in hundreds of dollars (to 2 decimals)?✩ hundred$ⒸDevelop a 95% prediction interval for the company's annual maintenance expense for this machine (to 2 decimals).($hundred, $hundred)d. If the maintenance contract costs $3000 per year, would you recommend purchasing the contract for the new machine in part (c)? Why or why not?Yes, the expected maintenance expense is greater than $3000

Given that By using excel Regression excel > data > data analysis > regression > input…

Answered: Jensen Tire & Auto is in the process of…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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The General Aviation Manufacturers Association has reported annual flying hours and fuel consumption for airplanes with a single, piston-driven engine as listed in file XR15057. Data are in millions of flying hours and millions of gallons of fuel, respectively. Determine the linear regression equation describing fuel consumption as a function of flying hours, then identify and interpret the slope, the coefficient of correlation, and the coefficient of determination. At the 0.05 level of significance, could the population slope and the population coefficient of correlation be zero? Determine the 95% confidence interval for the population slope Year Hours Gallons 1992 18400000 199100000 1993 17000000 184200000 1994 16400000 177200000 1995 17800000 192600000 1996 17600000 188400000 1997 18300000 196300000
A major brokerage company has an office in Miami, Florida. The manager of the office is evaluated based on the number of new clients generated each quarter. Data were collected that show the number of new customers added during each quarter between 2015 and 2018. A multiple regression model was developed with the number of new customers as the dependent and the following four independent variables: Period (1, …, 16): A variable that measures the trend; Q1 = 1 for first quarter, Q1 = 0 otherwise; Q2 = 1 for second quarter, Q2 = 0 otherwise; Q3 = 1 for third quarter, Q3 = 0 otherwise. Questions: 1. Explain each of the four slopes (Period, Q1, Q2, Q3). 2. How many new customers would you expect in the second quarter of the following year (2019)?
Can brand, battery life, and internal storage capacity affect a smartphone's price? Use MegaStat and α = .05 to perform a regression analysis for the Smartphones01BS dataset and answer the following questions. When you copy and paste output from MegaStat to answer a question, remember to choose to "Keep Formatting" to paste the text.
Use the Financial database from “Excel Databases.xls” on Blackboard. Use Total Revenues, Total Assets, Return on Equity, Earnings Per Share, Average Yield, and Dividends Per Share to predict the average P/E ratio for a company. Use Excel to develop the multiple linear regression model. Assume a 5% level of significance. Which independent variable is the strongest predictor of the average P/E ratio of a company? A. Total Revenues B. Average Yield C. Earnings Per Share D.Return on Equity E. Total Assets F.Dividends Per Share Company Type Total Revenues Total Assets Return on Equity Earnings per Share Average Yield Dividends per Share Average P/E Ratio AFLAC 6 7251 29454 17.1 2.08 0.9 0.22 11.5 Albertson's 4 14690 5219 21.4 2.08 1.6 0.63 19 Allstate 6 20106 80918 20.1 3.56 1 0.36 10.6 Amerada Hess 7 8340 7935 0.2 0.08 1.1 0.6 698.3 American General 6 3362 80620 7.1 2.19 3 1.4 21.2 American Stores 4 19139 8536 12.2 1.01 1.4 0.34 23.5 Amoco 7 36287…
A cafe company wants to determine how the money they spend on Google ads impacts their monthly revenue. Over 6 consecutive months, they vary the amount they spend on their Ads (in $) and record the associated revenue (in $) for each month. The data is shown below: l Revenue 50 427 75 472 100 467 125 529 150 518 175 543 A) Develop a regression equation for predicting monthly revenue based on the amount spent with Ads. What is the y-intercept? B) What is the sample correlation between these two variables? C) What is the slope of your regression equation? Give your answer to two decimal places. D) Using a 0.05 level of significance, does this regression equation appear to have any value for predicting revenue based on Ads?
A medical researcher wishes to determine how the dosage (in milliliters) of an experimental drugaffects the heart rate (in beats per minute) of patients with an elevated heart rate. The data for asample of eight patients with an elevated heart rate are provided in the following table.Drug Dosage 0 5 10 20 25 30 40 50Heart Rate 135 124 106 89 85 72 68 62(a) Determine the linear regression model that will best predict a patient’s heart rate based on thedosage of the drug received. (b) How well does the linear regression model fit this sample data? (c) If a patient with an elevated heart rate is administered a 35 ml dose of this drug, predict theresulting heart rate of the patient.
We have data from 209 publicly traded companies (circa 2010) indicating sales and compensation information at the firm-level. We are interested in predicting a company's sales based on the CEO's salary. The variable sales; represents firm i's annual sales in millions of dollars. The variable salary; represents the salary of a firm i's CEO in thousands of dollars. We use least-squares to estimate the linear regression sales; = a + ßsalary; + ei and get the following regression results: . regress sales salary Source Model Residual Total sales salary cons SS 337920405 2.3180e+10 2.3518e+10 df 1 207 208 Coef. Std. Err. .9287785 .5346574 5733.917 1002.477 MS 337920405 111980203 113066454 Number of obs F (1, 207) Prob > F R-squared t P>|t| = Adj R-squared = Root MSE 1.74 0.084 5.72 0.000 = = -.1252934 3757.543 = 209 3.02 0.0838 0.0144 0.0096 10582 [95% Conf. Interval] 1.98285 7710.291 This output tells us the regression line equation is sales = 5,733.917 +0.9287785 salary. Interpret the…
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 Annual (hours) Maintenance Expense 15 22 12 27 22 35 30 42 34 52 19 36 26 38 33 44 42 57 40 45 a. Develop the estimated regression equation that relates annual maintenance expense (in hundreds of dollars) to weekly usage hours (to 3 decimals). Expense = Weekly Usage b. Test the significance of the relationship in part (a) at a 0.05 level of significance. Compute the value of the F test statistic (to 2 decimals). The p value is Select your answer- - Select your answer What is your less than 0.01 between 0.01 and 0.025 - Select your a between 0.025 and 0.05 c. Jensen expe between 0.05 and 0.10 greater than 0.10 sed 30 hours per week.…
Linear regression is a highly effective data analysis method that accurately estimates the value of unknown data using related and known data. This is achieved using a linear equation that accurately models the quantitative relationship between the dependent (unknown) and independent (known) variables. In other words, by looking at how one variable affects another, this method can accurately forecast the value of the dependent variable. It involves choosing the variable to forecast and using another variable to make informed predictions about its value. In experiments, the independent variable is the cause, and its value remains constant while other variables have been modified. On the other hand, the dependent variable is the effect, and changes influence its value in the independent variable. As I began my business, I struggled with determining the appropriate pricing for my products. It was important that the prices were reasonable while allowing for a profit. The pricing had to…

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