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) AnnualMaintenance Expense 17 22 14 27 24 35 32 42 36 52 21 36 28 38 35 44 44 57 42 45 a. Develop the estimated regression equation that relates annual maintenance expense to weekly usage (to 3 decimals). expense + weekly usage b. Test the significance of the relationship in part (a) at a level of significance. Compute the value of the f test statistic (to 2 decimals). c. 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)
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 |
| 17 | 22 |
| 14 | 27 |
| 24 | 35 |
| 32 | 42 |
| 36 | 52 |
| 21 | 36 |
| 28 | 38 |
| 35 | 44 |
| 44 | 57 |
| 42 | 45 |
a. Develop the estimated regression equation that relates annual maintenance expense to weekly usage (to 3 decimals). expense + weekly usage
b. Test the significance of the relationship in part (a) at a level of significance.
Compute the value of the f test statistic (to 2 decimals).
c. 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)
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