) Use the data to develop an estimated regression equation that could be used to predict the annual maintenance cost given the age of the bus. What is the estimated regression model? Let x represent the age of the bus. If required, round your answers to two decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300) Test whether each of the regression parameters Bo and B1 is equal to zero at a 0.05 level of significance. What are the correct interpretations of the estimated regression parameters? Are these interpretations reasonable? (1) We can conclude that both Bo and B1 are equal to zero, where Bo is the estimated annual maintenance cost when the age of bus is zero years and Bi is the estimated change in annual maintenance cost for a one year increase in age of bus. The interpretation of Bo is not reasonable but the interpretation of Bi is reasonable. (i) We cannot conclude that neither Bo nor B1 are equal to zero, where Bo is the estimated change in annual maintenance cost for a one year increase in age of bus and Bi is the estimated annual maintenance cost when the age of bus is zero years. The interpretation of Bo is reasonable but the interpretation of Bi is not reasonable. (iii) We can conclude that Bo = 0 but B1 + 0, where Bo is the estimated annual maintenance cost when the age of bus is zero years and B1 is the estimated change in annual maintenance cost for a one year increase in age of bus. Both interpretations are reasonable. (iv) We can conclude that neither Bo nor B1 are equal to zero, where Bo is the estimated annual maintenance cost when the age of bus is zero years and B1 is the estimated change in annual maintenance cost for a one year increase in age of bus. The interpretation of Bo is no reasonable but the interpretation of Bi is reasonable. - Select your answer - ) How much of the variation in the sample values of annual maintenance cost does the model you estimated in part (b) explain? If required, round your answer to two decimal places. ) What do you predict the annual maintenance cost to be for a 3.5 year old bus? If required, round your answer to the nearest whole number. Do not round intermediate calculations.

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(b) Use the data to develop an estimated regression equation that could be used to predict the annual maintenance cost given the age of the bus. What is the estimated regression model?
Let x represent the age of the bus.
If required, round your answers to two decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300)
(c) Test whether each of the regression parameters Bo and B1 is equal to zero at a 0.05 level of significance. What are the correct interpretations of the estimated regression parameters? Are these interpretations reasonable?
(i) We can conclude that both Bo and B1 are equal to zero, where Bo is the estimated annual maintenance cost when the age of bus is zero years and B1 is the estimated change in annual maintenance cost for a one year increase in age of bus. The interpretation of Bo is not
reasonable but the interpretation of B1 is reasonable.
(ii) We cannot conclude that neither Bo nor B1 are equal to zero, where Bo is the estimated change in annual maintenance cost for a one year increase in age of bus and B1 is the estimated annual maintenance cost when the age of bus is zero years. The interpretation of Bo is
reasonable but the interpretation of B1 is not reasonable.
(iii) We can conclude that Bo = 0 but B1 + 0, where Bo is the estimated annual maintenance cost when the age of bus is zero years and B1 is the estimated change in annual maintenance cost for a one year increase in age of bus. Both interpretations are reasonable.
(iv) We can conclude that neither Bo nor B1 are equal to zero, where Bo is the estimated annual maintenance cost when the age of bus is zero years and B1 is the estimated change in annual maintenance cost for a one year increase in age of bus. The interpretation of Bo is not
reasonable but the interpretation of B1 is reasonable.
- Select your answer -
(d) How much of the variation in the sample values of annual maintenance cost does the model you estimated in part (b) explain?
If required, round your answer to two decimal places.
%
(e) What do you predict the annual maintenance cost to be for a 3.5 year old bus?
If required, round your answer to the nearest whole number. Do not round intermediate calculations.
Transcribed Image Text:(b) Use the data to develop an estimated regression equation that could be used to predict the annual maintenance cost given the age of the bus. What is the estimated regression model? Let x represent the age of the bus. If required, round your answers to two decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300) (c) Test whether each of the regression parameters Bo and B1 is equal to zero at a 0.05 level of significance. What are the correct interpretations of the estimated regression parameters? Are these interpretations reasonable? (i) We can conclude that both Bo and B1 are equal to zero, where Bo is the estimated annual maintenance cost when the age of bus is zero years and B1 is the estimated change in annual maintenance cost for a one year increase in age of bus. The interpretation of Bo is not reasonable but the interpretation of B1 is reasonable. (ii) We cannot conclude that neither Bo nor B1 are equal to zero, where Bo is the estimated change in annual maintenance cost for a one year increase in age of bus and B1 is the estimated annual maintenance cost when the age of bus is zero years. The interpretation of Bo is reasonable but the interpretation of B1 is not reasonable. (iii) We can conclude that Bo = 0 but B1 + 0, where Bo is the estimated annual maintenance cost when the age of bus is zero years and B1 is the estimated change in annual maintenance cost for a one year increase in age of bus. Both interpretations are reasonable. (iv) We can conclude that neither Bo nor B1 are equal to zero, where Bo is the estimated annual maintenance cost when the age of bus is zero years and B1 is the estimated change in annual maintenance cost for a one year increase in age of bus. The interpretation of Bo is not reasonable but the interpretation of B1 is reasonable. - Select your answer - (d) How much of the variation in the sample values of annual maintenance cost does the model you estimated in part (b) explain? If required, round your answer to two decimal places. % (e) What do you predict the annual maintenance cost to be for a 3.5 year old bus? If required, round your answer to the nearest whole number. Do not round intermediate calculations.
The regional transit authority for a major metropolitan area wants to determine whether there is a relationship between the age of a bus and the annual maintenance cost. A sample of ten buses resulted in the following data.
Click on the datafile logo to reference the data.
DATA file
Age of Bus Annual Maintenance
(years)
Cost ($)
1
350
370
2
480
2
520
2
590
3
550
4
750
4
800
790
5
950
Transcribed Image Text:The regional transit authority for a major metropolitan area wants to determine whether there is a relationship between the age of a bus and the annual maintenance cost. A sample of ten buses resulted in the following data. Click on the datafile logo to reference the data. DATA file Age of Bus Annual Maintenance (years) Cost ($) 1 350 370 2 480 2 520 2 590 3 550 4 750 4 800 790 5 950
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