Question
The chief of automobile maintenance for the city of Stillwater feels that maintenance costs on high mileage cars are much higher than those costs for
The chief of automobile maintenance for the city of Stillwater feels that maintenance costs on high mileage cars are much higher than those costs for low-mileage cars. The maintenance chief regresses yearly maintenance costs for a sample of 200 cars on each car's total mileage for the year. She finds the following:
Yhat= $50 +.030X, Sy|x = $150, sb= .0005, r2=.90. Xbar=50,000. sx= 10,000
where Y is maintenance cost (in dollars) for the year and X is the mileage on a car.
a. Is there arelationshipbetween maintenance costs and mileage?
b. What are the predicted maintenance costs of a car with 50,000 miles?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started