Question
The materials handling manager of a manufacturing company is trying to forecast the cost of maintenance for the company's fleet of over-the-road tractors. The manager
The materials handling manager of a manufacturing company is trying to forecast the cost of maintenance for the company's fleet of over-the-road tractors. The manager believes that the cost of maintaining the tractors increases with their age. The following data was collected:
Age (years) | Yearly Maintenance Cost ($) | Age (years) | Yearly Maintenance Cost ($) |
6.5 | 1,519 | 7.0 | 2,094 |
6.5 | 1,949 | 2.5 | 1,063 |
6.5 | 1,933 | 2.5 | 1,082 |
5.0 | 1,395 | 8.0 | 1,664 |
6.0 | 1,623 | 8.0 | 2,273 |
6.0 | 1,581 | 3.0 | 1,878 |
7.0 | 1,790 | 3.0 | 1,366 |
7.0 | 2,422 | 3.0 | 1,449 |
7.5 | 1,887 |
The linear regression forecasting shows that the line representing the relationship between the tractor age and maintenance cost is: Y=337.068+ 115.692 X, where Y=Yearly maintenance cost in dollars and X=Age in years.
If a section has 25 two-year-old tractors, what is the forecast for the annual maintenance cost?
( $ ) Enter your response here.
(Enter your response rounded to two decimal places.)
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