The manager of the Bayville 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:

Miles Driven Car Age (yr.)

Maintenance Cost 16,320 7 $1,200 15,100 8 1,400 18,500 8 1,820 10,200 3 900 9,175 3 650 12,770 7 1,150 8,600 2 875 7,900 3 900

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 5 years old and will be driven 10,000 miles in 1 year. LO.1