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Jensen Tire & Auto is in the process of deciding whether to purchase a maintenance contract...

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). Weekly Usage (hours) Annual Maintenance Expense 20 23 17 28 27 36 35 43 39 53 24 37 31 39 38 45 47 58 45 46 Develop the estimated regression equation that relates annual maintenance expense (in hundreds of dollars) to weekly usage hours (to 3 decimals). Expense = + Weekly Usage Test the significance of the relationship in part (a) at a .05 level of significance. Compute the value of the F test statistic (to 2 decimals). The p value is What is your conclusion? Jensen expects the new machine to be used 30 hours per week. What is the expected annual maintenance expense in hundreds of dollars (to 2 decimals)? Develop a 95% prediction interval for the company's annual maintenance expense for this machine (to 2 decimals). ( , ) If the maintenance contract costs $3000 per year, would you recommend purchasing the contract for the new machine in part (c)?

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Jensen Tire & Auto is in the process of deciding whether to purchase a maintenance contract...
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). Weekly Usage (hours) Annual Maintenance Expense 17 25 14 30 24 38 32 45 36 55 21 39 28 41 35 47 44 60 42 48 Develop...
Jensen Tire & Auto is in the process of deciding whether to purchase a maintenance contract...
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). Weekly Usage (hours) Annual Maintenance Expense 15 24 12 29 22 37 30 44 34 54 19 38 26 40 33 46 42 59 40 47 A.)...
Jensen Tire & Auto is in the process of deciding whether to purchase a maintenance contract...
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). Weekly Usage (hours) Annual Maintenance Expense 16 19 13 24 23 32 31 39 35 49 20 33 27 35 34 41 43 54 41 42 a....
Jensen Tire & Auto is in the process of deciding whether to purchase a maintenance contract...
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). Weekly Usage (hours) Annual Maintenance Expense 13 17.0 10 22.0 20 30.0 28 37.0 32 47.0 17 30.5 24 32.5 31 39.0 40 51.5 38 40.0 (a)...
Jensen Tire & Auto is in the process of deciding whether to purchase a maintenance contract...
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