The chief of automobile maintenance for the city of Normal feels that maintenance costs on high- mileage
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= $50 + .030XSy|x = 150sb = .005r2 = .90
= 50,000sx = 10,000
where Y is maintenance cost (in dollars) for the year and X is the mileage on a car.
(a) Is there a relationship between maintenance costs and mileage?
(b) What are the predicted maintenance costs of a car with 50,000 miles? Place a 95% confidence limit around this estimate.
(c) The maintenance chief considers $ 1,000 in maintenance a year excessive. For this criterion, how many miles will generate maintenance costs of $ 1,000?
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Related Book For
Applied Statistics For Public And Nonprofit Administration
ISBN: 9781285737232
9th Edition
Authors: Kenneth J. Meier, Jeffrey L. Brudney, John Bohte
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