Answer Happy

A statistical program is recommended. Jensen Tire & Auto is
in the process of deciding whether to purchase a maintenance
contract for its new computer wheel alignment and balancing
machine. Managers feel that maintenance expense should be related
to usage, and they collected the following information on weekly
usage (hours) and annual maintenance expense (in hundreds of
dollars).
(a)
Develop the estimated regression equation that could be used to
predict the annual maintenance expense (in hundreds of dollars)
given the weekly usage (in hours). (Round your numerical values to
two decimal places.)
ŷ =
(b)
Test the significance of the relationship in part (a) at a 0.05
level of significance. (Use the F test.)
State the null and alternative hypotheses.
H0: 𝛽0 = 0
Ha: 𝛽0 ≠ 0H0: 𝛽1 =
0
Ha: 𝛽1 ≠ 0 H0: 𝛽1 ≥ 0
Ha: 𝛽1 <
0H0: 𝛽0 ≠ 0
Ha: 𝛽0 =
0H0: 𝛽1 ≠ 0
Ha: 𝛽1 = 0
Find the value of the test statistic. (Round your answer to two
decimal places.)
Find the p-value. (Round your answer to three
decimal places.)
p-value =
State your conclusion.
Reject H0. We cannot conclude that the
relationship between weekly usage (hours) and annual maintenance
expense (in hundreds of dollars) is significant.
Reject H0. We conclude that the
relationship between weekly usage (hours) and annual maintenance
expense (in hundreds of dollars) is significant.
Do not reject H0. We conclude
that the relationship between weekly usage (hours) and annual
maintenance expense (in hundreds of dollars) is significant.
Do not reject H0. We cannot conclude
that the relationship between weekly usage (hours) and annual
maintenance expense (in hundreds of dollars) is significant.
(c)
Jensen expects to use the new machine 34 hours per
week. Develop a 95% prediction interval for the company's annual
maintenance expense (in hundreds of dollars). (Round your answers
to two decimal places.)
$ hundred to $ hundred
(d)
If the maintenance contract costs $3,600 per year, would
you recommend purchasing it? Why or why not? (Round your answer to
two decimal places.)
The expected expense of a machine being used 34 hours
per week is $ hundred. Since this expected expense
is ---Select--- less greater than the
cost of the maintenance contract, the maintenance
contract ---Select--- is is
not advisable.