Miles Driven Car Age (years) Maintenance Cost ($) 14,320 6 $1120 15,100 7 1610 17,415 8 1545 9,370 3 900 7,230 3 650 12,045 5 1500 8,100 2 550 6,300 3 730

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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The manager of the Salem police department motor pool
wants to develop a forecast model for annual maintenance
on police cars based on mileage in the past year and age of
the cars. The following data have been collected for eight
different cars:

a. Using Excel develop a multiple regression equation
for these data.
b. What is the coefficient of determination for this
regression equation?
c. Forecast the annual maintenance cost for a police car
that is four years old and will be driven 10,000 miles in
one year.

 

Miles Driven
Car Age (years)
Maintenance Cost ($)
14,320
6
$1120
15,100
7
1610
17,415
8
1545
9,370
3
900
7,230
3
650
12,045
5
1500
8,100
2
550
6,300
3
730
Transcribed Image Text:Miles Driven Car Age (years) Maintenance Cost ($) 14,320 6 $1120 15,100 7 1610 17,415 8 1545 9,370 3 900 7,230 3 650 12,045 5 1500 8,100 2 550 6,300 3 730
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