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The materials handling manager of a manufacturing company is trying to forecast the cost of maintenance for the company's fleet of over-the-road tractors. The manager believes that the cost of maintaining the tractors increases with their age. The following data was collected: Age (years) Yearly Maintenance Cost ($) Age (years) Yearly Maintenance Cost ($) 6.5 1,219 6.0 1,794 7.5 1,649 2.5 763 6.5 1,633 2.5 782 5.0 1,095 9.0 1,364 6.0 1,323 8.0 1,973 1,578 1,066 1,149 6.0 1,281 3.0 8.0 1,490 3.0 2,122 1,587 7.0 3.0 7.5 a. Use POM for Windows' least squares-linear regression module to develop a relationship to forecast the yearly maintenance cost based on the age of a tractor. (Enter your responses rounded to three decimal places and include a minus sign if necessary.) Y = 744.346 + 115.609'x where Y = Yearly maintenance cost in dollars and X= Age in years. b. If a section has 20 three-year-old tractors, what is the forecast for the annual maintenance cost? $ 3056.53. (Enter your response rounded to two decimal places.)

The materials handling manager of a manufacturing company is trying to forecast the cost of maintenance for the company's fleet of over-the-road tractors. The manager believes that the cost of maintaining the tractors increases with their age. The following data was collected: Age (years) Yearly Maintenance Cost ($) Age (years) Yearly Maintenance Cost ($) 6.5 1,219 6.0 1,794 7.5 1,649 2.5 763 6.5 1,633 2.5 782 5.0 1,095 9.0 1,364 6.0 1,323 8.0 1,973 1,578 1,066 1,149 6.0 1,281 3.0 8.0 1,490 3.0 2,122 1,587 7.0 3.0 7.5 a. Use POM for Windows' least squares-linear regression module to develop a relationship to forecast the yearly maintenance cost based on the age of a tractor. (Enter your responses rounded to three decimal places and include a minus sign if necessary.) Y = 744.346 + 115.609'x where Y = Yearly maintenance cost in dollars and X= Age in years. b. If a section has 20 three-year-old tractors, what is the forecast for the annual maintenance cost? $ 3056.53. (Enter your response rounded to two decimal places.)

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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The materials handling manager of a manufacturing company is trying to forecast the cost of maintenance for the company's fleet of over-the-road tractors. The manager believes that the cost of maintaining the tractors increases with their age. The following data was collected: Yearly Maintenance Cost (S) Yearly Maintenance Cost ($) 1,794 Age (years) Age (years) 6.5 1,219 1,649 6.0 7.5 2.5 763 6.5 1,633 2.5 782 5.0 1,095 9.0 1.364 6.0 1,323 8.0 1,973 6.0 1,281 3.0 1,578 8.0 1,490 3.0 1,066 2,122 1,587 7.0 3.0 1,149 7.5 a. Use POM for Windows' least squares-linear regression module to develop a relationship to forecast the yearly maintenance cost based on the age of a tractor. (Enter your responses rounded to three decimal places and include a minus sign if necessary.) Y = 744.346 + 115.609'x where Y = Yearly maintenance cost in dollars and X= Age in years. b. If a section has 20 three-year-old tractors, what is the forecast for the annual maintenance cost? $ 3056.53. (Enter your response rounded to two decimal places.)
Transcribed Image Text:The materials handling manager of a manufacturing company is trying to forecast the cost of maintenance for the company's fleet of over-the-road tractors. The manager believes that the cost of maintaining the tractors increases with their age. The following data was collected: Yearly Maintenance Cost (S) Yearly Maintenance Cost ($) 1,794 Age (years) Age (years) 6.5 1,219 1,649 6.0 7.5 2.5 763 6.5 1,633 2.5 782 5.0 1,095 9.0 1.364 6.0 1,323 8.0 1,973 6.0 1,281 3.0 1,578 8.0 1,490 3.0 1,066 2,122 1,587 7.0 3.0 1,149 7.5 a. Use POM for Windows' least squares-linear regression module to develop a relationship to forecast the yearly maintenance cost based on the age of a tractor. (Enter your responses rounded to three decimal places and include a minus sign if necessary.) Y = 744.346 + 115.609'x where Y = Yearly maintenance cost in dollars and X= Age in years. b. If a section has 20 three-year-old tractors, what is the forecast for the annual maintenance cost? $ 3056.53. (Enter your response rounded to two decimal places.)
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