Question
Regression Analysis. The city of Rockville reported the following annual cost data for maintenance work performed on its fleet of trucks. Reporting Period (Year) Total
| Regression Analysis. The city of Rockville reported the following annual cost data for maintenance work performed on its fleet of trucks. | ||||
| Reporting Period (Year) | Total Costs | Level of Activity (Miles Driven) | ||
| Year 1 | 750,000 | 225,000 | ||
| Year 2 | 850,000 | 240,000 | ||
| Year 3 | 1,100,000 | 430,000 | ||
| Year 4 | 1,150,000 | 454,000 | ||
| Year 5 | 1,250,000 | 560,000 | ||
| Year 6 | 1,550,000 | 710,000 | ||
| Required: | ||||
| 1. Use the regression slope / intercept formulas to develop the cost equation Y = f + vX. [Hint: Watch the video lecture on "mixed cost calculations" before you attempt this problem.] | ||||
| Regression Analysis |
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| Y = | f + | v * | X | |
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| 2. What would the city of Rockvilles estimated costs be if its trucks drove 500,000 miles in year 7? | ||||
| Y = | f + | v * | X | |
| Y |
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| ** Solve for Y |
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