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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 18 21 15 26 25 34 33 41 37 51 22 35 29 37 36 43 45 56 43 44 a. Develop the estimated regression equation that relates annual maintenance expense (in hundreds of dollars) to weekly usage hours (to 3 decimals). Expense = 9.8291 + 0.9561 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). 45.92 The p value is less than 0.01 What is your conclusion? - Select your answer - 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)? 38.51 hundred Develop a 95% prediction interval for the company's annual maintenance expense for this machine (to 2 decimals).

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 18 21 15 26 25 34 33 41 37 51 22 35 29 37 36 43 45 56 43 44 a. Develop the estimated regression equation that relates annual maintenance expense (in hundreds of dollars) to weekly usage hours (to 3 decimals). Expense = 9.8291 + 0.9561 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). 45.92 The p value is less than 0.01 What is your conclusion? - Select your answer - 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)? 38.51 hundred Develop a 95% prediction interval for the company's annual maintenance expense for this machine (to 2 decimals).

Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
6th Edition
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Bruce Crauder, Benny Evans, Alan Noell
Chapter3: Straight Lines And Linear Functions
Section3.CR: Chapter Review Exercises
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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 18 21 15 26 25 34 33 41 37 51 22 35 29 37 36 43 45 56 43 44 a. Develop the estimated regression equation that relates annual maintenance expense (in hundreds of dollars) to weekly usage hours (to 3 decimals). Expense = 9.8291 + 0.9561 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). 45.92 The p value is less than 0.01 What is your conclusion? |- Select your answer - 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)? $ 38.51 hundred Develop a 95% prediction interval for the company's annual maintenance expense for this machine (to 2 decimals).
Transcribed Image Text: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 18 21 15 26 25 34 33 41 37 51 22 35 29 37 36 43 45 56 43 44 a. Develop the estimated regression equation that relates annual maintenance expense (in hundreds of dollars) to weekly usage hours (to 3 decimals). Expense = 9.8291 + 0.9561 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). 45.92 The p value is less than 0.01 What is your conclusion? |- Select your answer - 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)? $ 38.51 hundred Develop a 95% prediction interval for the company's annual maintenance expense for this machine (to 2 decimals).
37 51 22 35 29 37 36 43 45 56 43 44 a. Develop the estimated regression equation that relates annual maintenance expense (in hundreds of dollars) to weekly usage hours (to 3 decimals). Expense = 9.8291 + 0.9561 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). 45.92 The p value is less than 0.01 What is your conclusion? |- Select your answer - 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)? 38.51 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? - Select your answer - Select your answer - No, the expected maintenance expense is less than $3000 Yes, the expected maintenance expense is greater than $3000 0- Icon Key
Transcribed Image Text:37 51 22 35 29 37 36 43 45 56 43 44 a. Develop the estimated regression equation that relates annual maintenance expense (in hundreds of dollars) to weekly usage hours (to 3 decimals). Expense = 9.8291 + 0.9561 Weekly Usage b. Test the significance of the relationship in part (a) at a 0.05 level of significance. Compute the value of the F test statistic (to 2 decimals). 45.92 The p value is less than 0.01 What is your conclusion? |- Select your answer - c. Jensen expects the new machine to be used 30 hours per week. What is the expected annual maintenance expense in hundreds of dollars (to 2 decimals)? 38.51 hundred Develop a 95% prediction interval for the company's annual maintenance expense for this machine (to 2 decimals). ($ 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? - Select your answer - Select your answer - No, the expected maintenance expense is less than $3000 Yes, the expected maintenance expense is greater than $3000 0- Icon Key
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