home / study / math / statistics and probability / solutions manual / statistical techniques in business and economics / 15th edition / chapter 13 / problem 64e Chapter 13, Problem 64E Statistical Techniques in Business and Economics (15th Edition) Problem Refer to the Buena School bus data. Develop a regression equation that expresses the relationship between age of the bus and maintenance. The age of the bus is the independent variable. a. Draw a scatter diagram. What does this diagram suggest as to the relationship between the two variables? Is it direct or indirect? Does it appear to be strong or weak? b. Develop a regression equation. How much does an additional year add to the maintenance cost. What is the estimated maintenance cost for a 10-year-old bus? c. Conduct a test of hypothesis to determine whether the slope of the regression line is greater than zero. Use the .05 significance level. Interpret your findings from parts (a), (b), and (c) in a brief report. TEXTBOOK SOLUTIONS Search EXPERT Q&A Bookmark Step-by-step solution Step 1 of 3 a. There seems to be a weak direct relationship between the two variables. Comment Step 2 of 3 Step 3 of 3 Was this solution helpful? 2 0 Show all steps: ON home / study / math / statistics and probability / solutions manual / statistical techniques in business and economics / 15th edition / chapter 13 / problem 64e Chapter 13, Problem 64E Statistical Techniques in Business and Economics (15th Edition) Problem Refer to the Buena School bus data. Develop a regression equation that expresses the relationship between age of the bus and maintenance. The age of the bus is the independent variable. a. Draw a scatter diagram. What does this diagram suggest as to the relationship between the two variables? Is it direct or indirect? Does it appear to be strong or weak? b. Develop a regression equation. How much does an additional year add to the maintenance cost. What is the estimated maintenance cost for a 10-year-old bus? TEXTBOOK SOLUTIONS EXPERT Q&A Search c. Conduct a test of hypothesis to determine whether the slope of the regression greater all steps: Bookmark line is Show than zero. Use the .05 significance level. Interpret your findings from parts (a), (b), and (c) in a brief report. Step-by-step solution Step 1 of 3 Step 2 of 3 b. The regression equation is Maintenance = 386.8 + 9.07(Age). An addition year adds $9.07 to the maintenance cost. Estimated cost is$477.50, found by 386.8 + 9.07(10) Comment Step 3 of 3 c. H0:β ≤ 0 H1:β > 0 df = n – 2 = 80 – 2 = 78 Reject H0 if t > 1.665 t = 9.07/1.956 = 4.64 Reject H0 and conclude the slope is positive. Comment Was this solution helpful? 2 Statistics Chegg tutors who can help right now 0 ON 423 10 410 7 529 4 477 2 540 11 450 6 390 5 424 4 433 7 428 7 494 7 396 6 458 4 493 6 475 9 476 10 403 4 337 6 492 10 426 4 449 4 Expert Answer TEXTBOOK SOLUTIONS statpro answered this 1,346 answers Search EXPERT Q&A Was this answer helpful? 0 Entire Analysis was done in Excel I have pasted all the snapshots below.Let me know if you need anything else. The Relationship is quite strong in an increasing trend.Though there are different maintainance costs in the same year,The trend is increasing. 0 View comments (2) Questions viewed by other students Buena School District Bus Data Maintenance cost per month (in Dollars) Age (in years) Miles per month Engine type 0 = Diesel, 1 = gasoline Seating capacity 329 7 853 0 55 329 3 741 0 55 357 8 760 0 6 433 9 848 0 55 433 9 848 0 55 455 7 828 0 55 455 7 828 0 55 461 6 849 0 55 461 6 849 0 55 452 9 831 0 42 471 9 815 0 4... Refer to the Baseball 2012 data, which reports information on the 2012 Major League Baseball season. Let attendance be the dependent variable and total team salary, in millions of dollars, be the independent variable. Determine the regression equation and answer the following questions. a. Draw a scatter diagram. From the diagram, does there seem to be a direct relationship between... 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Quantitative Maintenance lower 320 340 360 380 400 420 440 460 480 500 520 540 560 Histogram 20 18 16 Percent 14 12 10 8 6 4 2 0 Maintenance Descriptive statistics count mean sample variance sample standard deviation minimum maximum range Maintenance 80 450,29 2.882,18 53,69 329 570 241 upper < < < < < < < < < < < < < 340 360 380 400 420 440 460 480 500 520 540 560 580 midpoint 330 350 370 390 410 430 450 470 490 510 530 550 570 width 20 20 20 20 20 20 20 20 20 20 20 20 20 frequency 3 3 1 8 5 12 12 15 7 8 1 3 2 80 1st quartile median 3rd quartile interquartile range mode low extremes low outliers high outliers high extremes 420,00 456,00 489,75 69,75 329,00 0 0 0 0 Frequency Distribution - Quantitative Maintenance lower upper 300 350 400 450 500 550 < < < < < < 350 400 450 500 550 600 midpoint 325 375 425 475 525 575 width 50 50 50 50 50 50 frequency 3 12 22 29 11 3 80 midpoint 343 378 413 width 35 35 35 frequency 6 8 12 Histogram 40 35 Percent 30 25 20 15 10 5 0 Maintenance Frequency Distribution - Quantitative Maintenance lower 325 360 395 upper < < < 360 395 430 430 465 500 535 570 < < < < < Histogram 30 25 Percent 20 15 10 5 0 Maintenance Descriptive statistics count mean sample variance sample standard deviation minimum maximum range 1st quartile median 3rd quartile interquartile range mode low extremes low outliers high outliers high extremes Miles 80 827,53 1.188,20 34,47 741 908 167 806,00 827,00 851,50 45,50 815,00 0 0 0 0 BoxPlot 465 500 535 570 605 448 483 518 553 587 35 35 35 35 35 20 20 9 4 1 80 BoxPlot 1/28/2010 16:03.39 (1) 600 650 700 750 800 850 900 950 850 900 950 850 900 950 Miles Descriptive statistics count mean sample variance sample standard deviation minimum maximum range Miles 80 827,53 1.188,20 34,47 741 908 167 1st quartile median 3rd quartile interquartile range mode 806,00 827,00 851,50 45,50 815,00 low extremes low outliers high outliers high extremes 0 0 0 0 BoxPlot 1/28/2010 16:06.08 (1) 600 650 700 750 800 Miles DotPlot 1/28/2010 16:06.08 (1) 600 650 700 750 800 Miles Descriptive statistics count mean sample variance sample standard deviation minimum maximum range 1st quartile median 3rd quartile interquartile range mode Miles 80 830,11 1.779,85 42,19 741 1008 267 806,00 827,00 851,50 45,50 815,00 low extremes low outliers high outliers high extremes 0 0 1 1 BoxPlot 1/28/2010 16:08.20 (1) 600 700 800 900 1000 1100 1000 1100 Miles DotPlot 1/28/2010 16:08.20 (1) 600 700 800 900 Miles Correlation Matrix Maintenance Age Maintenance 1,000 ,465 Age 1,000 Miles Miles ,450 ,522 1,000 80 sample size ± .220 critical value .05 (two-tail) ± .286 critical value .01 (two-tail) percent 3,8 3,8 1,3 10,0 6,3 15,0 15,0 18,8 8,8 10,0 1,3 3,8 2,5 100,0 cumulative frequency percent 3 3,8 6 7,5 7 8,8 15 18,8 20 25,0 32 40,0 44 55,0 59 73,8 66 82,5 74 92,5 75 93,8 78 97,5 80 100,0 percent 3,8 15,0 27,5 36,3 13,8 3,8 100,0 percent 7,5 10,0 15,0 cumulative frequency percent 3 3,8 15 18,8 37 46,3 66 82,5 77 96,3 80 100,0 cumulative frequency percent 6 7,5 14 17,5 26 32,5 25,0 25,0 11,3 5,0 1,3 100,0 46 66 75 79 80 57,5 82,5 93,8 98,8 100,0