Test the significance of the relationship in part (a) at a .05 level of significance. 1 answer below »

The organizational issues surrounding the Secret Service have been widely reported and debated in th
February 3, 2022
Assume the same information as Problem 9. However, assume the length of time of the higher growth…
February 3, 2022

Jensen Tire & Auto is in the process of deciding whether to purchase a maintenance contractfor its new computer wheel alignment and balancing machine. Managers feel thatmaintenance expense should be related to usage, and they collected the following informationon weekly usage (hours) and annual maintenance expense (in hundreds of dollars).Weekly Usage Annual(hours) Maintenance Expense13 17.010 22.020 30.028 37.032 47.017 30.524 32.531 39.040 51.538 40.0a. Develop the estimated regression equation that relates annual maintenance expense toweekly usage.b. Test the significance of the relationship in part (a) at a .05 level of significance.c. Jensen expects to use the new machine 30 hours per week. Develop a 95% predictioninterval for the company’s annual maintenance expense.d. If the maintenance contract costs $3000 per year, would you recommend purchasingit? Why or why not?

 
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