The regional transit authority for a major metropolitan area wants to determine whether there is a relationship between the age of a bus and the annual maintenance cost. A sample of 10 buses resulted in the following data. Age of Bus(years) Annual MaintenanceCost ($) 1 350 2 370 2 480 2 520 2 590 3 550 4 750 4 800 5 790 5 950 a) Use the data to develop an estimated regression equation that could be used to predict the annual maintenance cost given the age of the bus. What is the estimated regression model? Letx represent the age of the bus. If required, round your answers to two decimal places b) Test whether each of the regression parametersβ0 andβ1 is equal to zero at a 0.05 level of significance. What are the correct interpretations of the estimated regression parameters? Are these interpretations reasonable?c) How much of the variation in the sample values of annual maintenance cost does the model you estimated in part (a) explain? (need in %)d) What do you predict the annual maintenance cost to be for a 3.5 year old bus?

The regional transit authority for a major metropolitan area wants to determine whether there is a relationship between the age of a bus and the annual maintenance cost. A sample of 10 buses resulted...

The regional transit authority for a major metropolitan area wants to determine whether there is a relationship between the age of a bus and the annual maintenance cost. A sample of 10 buses resulted in the following data.

Age of Bus (years)	Annual Maintenance Cost ($)
1	350
2	370
2	480
2	520
2	590
3	550
4	750
4	800
5	790
5	950

	a) Use the data to develop an estimated regression equation that could be used to predict the annual maintenance cost given the age of the bus. What is the estimated regression model?
	Letx represent the age of the bus.
	If required, round your answers to two decimal places

b) Test whether each of the regression parametersβ₀
andβ₁
is equal to zero at a 0.05 level of significance. What are the correct interpretations of the estimated regression parameters? Are these interpretations reasonable?

c) How much of the variation in the sample values of annual maintenance cost does the model you estimated in part (a) explain? (need in %)

d) What do you predict the annual maintenance cost to be for a 3.5 year old bus?

May 26, 2022

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The regional transit authority for a major metropolitan area wants to determine whether there is a relationship between the age of a bus and the annual maintenance cost. A sample of 10 buses resulted...

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