DATAfile: Jensen 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) 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 (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.) ŷ =        (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. H0: ?1 ≠ 0 Ha: ?1 = 0H0: ?1 = 0 Ha: ?1 ≠ 0    H0: ?0 ≠ 0 Ha: ?0 = 0H0: ?0 = 0 Ha: ?0 ≠ 0H0: ?1 ≥ 0 Ha: ?1 < 0 Find the value of the test statistic. (Round your answer to two decimal places.)   Find the p-value. (Round your answer to three decimal places.) p-value =  State your conclusion. Do not reject H0. We cannot conclude that the relationship between weekly usage (hours) and annual maintenance expense (in hundreds of dollars) is significant.Reject H0. We conclude that the relationship between weekly usage (hours) and annual maintenance expense (in hundreds of dollars) is significant.     Reject H0. We cannot conclude that the relationship between weekly usage (hours) and annual maintenance expense (in hundreds of dollars) is significant.Do not reject H0. We 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 29 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 $2,900 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 29 hours per week is

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question
DATAfile: Jensen
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)
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
(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.)
ŷ = 
 
 
 
(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.
H0: ?1 ≠ 0
Ha: ?1 = 0H0: ?1 = 0
Ha: ?1 ≠ 0    H0: ?0 ≠ 0
Ha: ?0 = 0H0: ?0 = 0
Ha: ?0 ≠ 0H0: ?1 ≥ 0
Ha: ?1 < 0
Find the value of the test statistic. (Round your answer to two decimal places.)
 
Find the p-value. (Round your answer to three decimal places.)
p-value = 
State your conclusion.
Do not reject H0. We cannot conclude that the relationship between weekly usage (hours) and annual maintenance expense (in hundreds of dollars) is significant.Reject H0. We conclude that the relationship between weekly usage (hours) and annual maintenance expense (in hundreds of dollars) is significant.     Reject H0. We cannot conclude that the relationship between weekly usage (hours) and annual maintenance expense (in hundreds of dollars) is significant.Do not reject H0. We 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 29 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 $2,900 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 29 hours per week is $ 
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Research Ethics
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman