3. Finally prepare a formal response, using Microsoft Word, from Peg Joness to Stephen Ruth explaining your numbers and calculations. Which costs are correlated with the average age of the aircraft? What is the slope and beta? Explain the coefficient of determination and covariance. Explain how this information benefits each airline. Submit your Excel Worksheet with five tabs (data, plus 4 tabs for the regressions) to the assignment drop box. Also include your formal response in a Microsoft Word document. Late work will not be accepted. The Excel worksheet and Word documents must be submitted BEFORE then end of Unit 7. This project is worth 160 points.

Northern Airline Data (numbers have been changed from text) Airframe Cost Engine Cost Average Age Year per Aircraft per Aircraft (Hours) 2001 61.80 33.49 6,512 2002 54.92 38.58 8,404 2003 69.70 51.48 11,077 2004 68.90 58.72 11,717 2005 63.72 45.47 13,275 2006 84.73 50.26 15,215 2007 78.74 80.60 18,390 Southeast Airline Data (numbers have been changed from text) Airframe Cost Engine Cost Average Age Year Per Aircraft per Aircraft (Hours) 2001 14.29 19.86 5,107 2002 25.15 31.55 8,145 2003 32.18 40.43 7,360 2004 31.78 22.10 5,773 2005 25.34 19.69 7,150 2006 32.78 32.58 9,364 2007 35.56 37.07 8,259