The city of Lancaster reported the following annual cost data for maintenance work performed on its fleet of trucks: Regression analysis was run for the city of Lancaster. The output is shown

here:

Coefficients

Required:

Use the regression output to develop the cost equation $Y=F+Vx$ by

filling in the dollar amounts for $f$ and $v.($Hint: no need to perform the analysis

on Excel. The coefficients are given$)(3$ Points$)$

What would the city of Lancaster's estimated costs be if its trucks drove

$700,000$ miles in year $7?(4$ Points$)$

Periods

Total costs

Level of activity $($Miles Driven$)$

Year $1$

$850,000$

$325,000$

Year$2$

$950,000$

$340,000$

Year$3$

$2,100,000$

$530,000$

Year$4$

$2,150,000$

$554,000$

Year$5$

$2,250,000$

$660,000$

Year$6$

$2,550,000$

$910,000$

Regression analysis was run for the city of Lancaster. The output is shown here:

Coefficients

Y$-$intercept

$156,662$

X$-$ variable

$2\mathrm{.}99$

Required: $1.$ Use the regression output to develop the cost equation Y $=$ F $+$ VX by filling in the dollar amounts for f and v$.($Hint: no need to perform the analysis on Excel. The coefficients are given$)(3$ Points$)$

$2.$ What would the city of Lancaster's estimated costs be if its trucks drove $700,000$ miles in year $7?(4$ Points$)$