Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN: 9781305627734
Author: Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 7, Problem 5P
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 10 buses resulted in the following data:
- a. Develop a scatter chart for these data. What does the scatter chart indicate about the relationship between age of a bus and the annual maintenance cost?
- 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?
- c. Test whether each of the regression parameters β0 and β1 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?
- d. How much of the variation in the sample values of annual maintenance cost does the model you estimated in part (b) explain?
- e. What do you predict the annual maintenance cost to be for a 3.5-year-old bus?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The regional transit authority for a major metropolitan area wants to determine whetherthere is a relationship between the age of a bus and the annual maintenance cost. A sampleof ten buses resulted in the following data:
a. Develop a scatter chart for these data. What does the scatter chart indicate about therelationship between age of a bus and the annual maintenance cost?b. Use the data to develop an estimated regression equation that could be used to predictthe annual maintenance cost given the age of the bus. What is the estimated regressionmodel?c. Test whether each of the regression parameters b0 and b1 is equal to zero at a 0.05level of significance. What are the correct interpretations of the estimated regressionparameters? Are these interpretations reasonable?d. How much of the variation in the sample values of annual maintenance cost does themodel you estimated in part b explain?e. What do you predict the annual maintenance cost to be for a 3.5-year-old bus?
One of the biggest changes in higher education in recent years has been the growth of online universities. The Online Education Database is an independent organization whose mission is to build a comprehensive list of the top accredited online colleges. The following table shows the retention rate (%) and the graduation rate (%) for 29 online colleges.a). Use Excel Data Analysis Tool – Regression to get the relationship between the two variables;b). Create a scatter diagram for the two variables and display regression equation and R square on chart, then explain the relationship between the variables;c). Did the estimated regression equation provide a good fit?d). Suppose you were the president of South University. After reviewing the results, would you be able to use the regression result for forecasting.
College
RR(%)
GR(%)
Western International University
7
25
South University
51
25
University of Phoenix
4
28
American InterContinental University
29
32
Franklin…
A sales manager collected the following data on annual sales for new customer accounts and the number of years of experience for a sample of 10 salespersons. Click on the datafile logo to reference the data.
a. Choose the correct scatter diagram for these data with years of experience as the independent variable. B
(NEED ANSWERS FOR B and C)
b. Develop an estimated regression equation that can be used to predict annual sales given the years of experience.
c. Use the estimated regression equation to predict annual sales for a salesperson with 9 years of experience (to the nearest whole number).
Chapter 7 Solutions
Essentials of Business Analytics (MindTap Course List)
Ch. 7 - Bicycling World, a magazine devoted to cycling,...Ch. 7 - In a manufacturing process the assembly line speed...Ch. 7 - Jensen Tire Auto is deciding whether to purchase...Ch. 7 - A sociologist was hired by a large city hospital...Ch. 7 - The regional transit authority for a major...Ch. 7 - A marketing professor at Givens College is...Ch. 7 - The Dow Jones Industrial Average (DJIA) and the...Ch. 7 - The Toyota Camry is one of the best-selling cars...Ch. 7 - Dixie Showtime Movie Theaters, Inc., owns and...Ch. 7 - Prob. 10P
Ch. 7 - The American Association of Individual Investors...Ch. 7 - The National Football League (NFL) records a...Ch. 7 - Johnson Filtration. Inc., provides maintenance...Ch. 7 - A study investigated the relationship between...Ch. 7 - The U.S. Department of Energys Fuel Economy Guide...Ch. 7 - A highway department is studying the relationship...Ch. 7 - A sample containing years to maturity and...Ch. 7 - In 2011, home prices and mortgage rates fell so...Ch. 7 - A recent 10-year study conducted by a research...Ch. 7 - The Scholastic Aptitude Test (or SAT) is a...Ch. 7 - Consider again the example introduced in Section...Ch. 7 - Alumni donations are an important source of...
Knowledge Booster
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
- Find the equation of the regression line for the following data set. x 1 2 3 y 0 3 4arrow_forwardA. Write the equation of the regression line. B. Interpret the slope in this context, and calculate the predicted birth weight of first borns and others C. Is there a statistically significant relationship between the average birth weight and parity? Provide an explanation with numeric support.arrow_forwardThe St. Lucian Government is interested in predicting the number of weekly riders on the public buses using the following variables: • • • • Price of bus trips per weekThe population in the cityThe monthly income of ridersAverage rate to park your personal vehicle Determine the multiple regression equation for the data. What is the predicted value of the number of weekly riders if: price of bus trips per week = $24; population = $2,000,000; the monthly income of riders = $13,500; and average rate to park your personal vehicle = $150. Interpret the coefficient of determination.arrow_forward
- Consumer Reports tested 19 different brands and models of road, fitness, and comfort bikes. Road bikes are designed for long road trips; fitness bikes are designed for regular workouts or daily commuters; and comfort bikes are designed for leisure rides on typically flat roads. The data file Bikes show the type, weight (lb.), and price ($) for the 20 bicycles tested. Develop an estimated regression equation that can be used to predict Price by using Type and Weight. Brand and Model Type Weight Price Klein Rêve v Road 20 1800 Giant OCR Composite 3 Road 22 1800 Giant OCR 1 Road 22 1000 Specialized Roubaix Road 21 1300 Trek Pilot 2.1 Road 21 1320 Cannondale Synapse 4 Road 21 1050 LeMond Poprad Road 22 1350 Raleigh Cadent 1.0 Road 24 650 Giant FCR3 Fitness 23 630 Schwinn Super Sport GS Fitness 23 700 Fuji Absolute 2.0 Fitness 24 700 Jamis Coda Comp Fitness 26 830 Cannondale Road Warrior 400 Fitness 25 700 Schwinn Sierra GS Comfort 31 340 Mongoose…arrow_forwardBowling Corporation wants to know how closely its current cost driver is correlated with its monthly operating costs. The managerial accountant runs a regression analysis using a statistical software program and produces the following data: Intercept Coefficient = 12,200,567 X Variable 1 Coefficient = 95.65 R-square= 0.8574 What is the Bowling Corporation's monthly cost equation? OA. y $95.65x + $12,200,567 OB. y $95.65x + $8.574 O c. y = $0.8574x + $12,200,567 O D. y = $12,200,567x + $8,574 ---arrow_forwardFor a data set consisting of two data points: a. Identify the regression line. b. What is the sum of squared errors for the regression line? Explain your answer.arrow_forward
- Is the number of calories in a beer related to the number of carbohydrates and/or the percentage of alcohol in the beer? The accompanying table has data for 35 beers. The values for three variables are included: the number of calories per 12ounces, the alcohol percentage, and the number of carbohydrates (in grams) per 12 ounces. a. Perform a multiple linear regression analysis, using calories as the dependent variable and percentage alcohol and number of carbohydrates as the independent variables. Let X1 represent alcohol percentage and let X2 represent the number of carbohydrates. (Round to four decimal places as needed.)arrow_forwardState the regression equation and use it to predict taxes for a house with lot size 10K.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill
Linear Algebra: A Modern IntroductionAlgebraISBN:9781285463247Author:David PoolePublisher:Cengage Learning
Big Ideas Math A Bridge To Success Algebra 1: Stu...AlgebraISBN:9781680331141Author:HOUGHTON MIFFLIN HARCOURTPublisher:Houghton Mifflin Harcourt
Holt Mcdougal Larson Pre-algebra: Student Edition...AlgebraISBN:9780547587776Author:HOLT MCDOUGALPublisher:HOLT MCDOUGAL
Functions and Change: A Modeling Approach to Coll...AlgebraISBN:9781337111348Author:Bruce Crauder, Benny Evans, Alan NoellPublisher:Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
Linear Algebra: A Modern Introduction
Algebra
ISBN:9781285463247
Author:David Poole
Publisher:Cengage Learning
Big Ideas Math A Bridge To Success Algebra 1: Stu...
Algebra
ISBN:9781680331141
Author:HOUGHTON MIFFLIN HARCOURT
Publisher:Houghton Mifflin Harcourt
Holt Mcdougal Larson Pre-algebra: Student Edition...
Algebra
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Functions and Change: A Modeling Approach to Coll...
Algebra
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Cengage Learning
Correlation Vs Regression: Difference Between them with definition & Comparison Chart; Author: Key Differences;https://www.youtube.com/watch?v=Ou2QGSJVd0U;License: Standard YouTube License, CC-BY
Correlation and Regression: Concepts with Illustrative examples; Author: LEARN & APPLY : Lean and Six Sigma;https://www.youtube.com/watch?v=xTpHD5WLuoA;License: Standard YouTube License, CC-BY