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 maintenand (in hundreds of dollars). Weekly Usage (hours) 13 10 20 28 32 17 24 31 40 38 Annual Maintenance Expense 17.0 OH-18-0 H₂ 22.0 30.0 37.0 47.0 30.5 32.5 39.0 51.5 40.0 (a) Develop the estimated regression equation that could be used to predict the annual maintenance expense (in hundreds of dollars) given the weekly usage (in hours). (Round your numerical values to two decimal places.) 9-|| (b) 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. O Hoi A₂ 20

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter7: Analytic Trigonometry
Section7.6: The Inverse Trigonometric Functions
Problem 94E
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100%
Find the p-value. (Round your answer to three decimal places.)
p-value =
State your conclusion.
O Reject Ho. We conclude that the relationship between weekly usage (hours) and annual maintenance expense (in hundreds of dollars) is significant.
O Do not reject Ho. We conclude that the relationship between weekly usage (hours) and annual maintenance expense (in hundreds of dollars) is significant.
O Do not reject Ho. We cannot conclude that the relationship between weekly usage (hours) and annual maintenance expense (in hundreds of dollars) is significant.
O Reject Ho. We cannot conclude that the relationship between weekly usage (hours) and annual maintenance expense (in hundreds of dollars) is significant.
(c) Jensen expects to use the new machine 33 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
(d) If the maintenance contract costs $3,500 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 33 hours per week is $
hundred. Since this expected expense is ---Select---✔ than the cost of the maintenance contract, the maintenance contract ---Select--- advisable.
Transcribed Image Text:Find the p-value. (Round your answer to three decimal places.) p-value = State your conclusion. O Reject Ho. We conclude that the relationship between weekly usage (hours) and annual maintenance expense (in hundreds of dollars) is significant. O Do not reject Ho. We conclude that the relationship between weekly usage (hours) and annual maintenance expense (in hundreds of dollars) is significant. O Do not reject Ho. We cannot conclude that the relationship between weekly usage (hours) and annual maintenance expense (in hundreds of dollars) is significant. O Reject Ho. We cannot conclude that the relationship between weekly usage (hours) and annual maintenance expense (in hundreds of dollars) is significant. (c) Jensen expects to use the new machine 33 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 (d) If the maintenance contract costs $3,500 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 33 hours per week is $ hundred. Since this expected expense is ---Select---✔ than the cost of the maintenance contract, the maintenance contract ---Select--- advisable.
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)
13
10
20
28
32
17
24
31
40
38
O Ho: B₁ = 0
H₂: B₁ = 0
Annual
Maintenance
Expense
Ọ Hoi Bo=0
Ha: Bo * 0
17.0
O Ho: B₁ * 0
H ₂: B₁ = 0
22.0
30.0
37.0
47.0
30.5
32.5
39.0
(a) Develop the estimated regression equation that could be used to predict the annual maintenance expense (in hundreds of dollars) given the weekly usage (in hours). (Round your numerical values to two decimal places.)
51.5
(b) 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.
O Ho: B₁ 20
H₂: B₁ <0
40.0
o Ho Boo
Ha Bo=0
Find the value of the test statistic. (Round your answer to two decimal places.)
Activate Windows
Go to Settings to activate Windows.
Transcribed Image Text: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) 13 10 20 28 32 17 24 31 40 38 O Ho: B₁ = 0 H₂: B₁ = 0 Annual Maintenance Expense Ọ Hoi Bo=0 Ha: Bo * 0 17.0 O Ho: B₁ * 0 H ₂: B₁ = 0 22.0 30.0 37.0 47.0 30.5 32.5 39.0 (a) Develop the estimated regression equation that could be used to predict the annual maintenance expense (in hundreds of dollars) given the weekly usage (in hours). (Round your numerical values to two decimal places.) 51.5 (b) 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. O Ho: B₁ 20 H₂: B₁ <0 40.0 o Ho Boo Ha Bo=0 Find the value of the test statistic. (Round your answer to two decimal places.) Activate Windows Go to Settings to activate Windows.
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