A department of transportation's study on driving speeds and miles per gallon for midsize automobiles resulted in the following data:
Speed (MPH)	Miles per Gallon
30	28
50	25
40	25
55	23
30	30
25	32
60	21
25	35
50	26
55	25
(a) Find the line of best fit
(b) Predict the mileage for a driving speed of 42 mph.
c) Compute and interprent the correlation coefficient.
(b) Is the relationship between speed and gas mileage statistically signficant? Provide support.

A tire manufacturer has been producing tires with an average life expectancy of 26,000 miles. Now the company is advertising that its new tires' life expectancy has increased. In order to test the legitimacy of the advertising campaign, an independent testing agency tested a sample of 6 of their tires and has provided the following data. Ho: m < 26 Ha: m > 26 Life Expectancy (In Thousands of Miles) 28 27 25 28 29 25

At 99% confidence, what is the critical value?

Test to determine whether or not the tire company is using legitimate advertising. hypothesis

On January 1, Year 1, the City Taxi Company purchased a new taxi cab for $90,000. The cab has an expected salvage value of $38,000. The company estimates that the cab will be driven 200,000 miles over its life. It uses the units-of-production method to determine depreciation expense. The cab was driven 45,000 miles the first year and 102,000 the second year. What would be the depreciation expense reported on the Year 2 income statement and the book value of the taxi, respectively, at the end of Year 2?

		$45,900 and $23,850.
		$45,900 and -$14,150.
		$26,520 and $13,780.
		$26,520 and $51,780.

A six-lane freeway (three lanes in each direction) operates at capacity during peak hour. It has 11-ft

lanes, 4-ft right shoulders, and there are three ramps within three miles upstream of the segment

midpoint and four ramps within three miles downstream of the segment midpoint. The freeway has an

AADT of 60,000 veh/day. The traffic stream has 8% heavy vehicles, and it is on rolling terrain with a

peak- hour factor of 0.85. It is known that 12% of the AADT occurs in the peak hour and that the

directional factor is 0.6. What is the freeway’s LOS?

3. A small fire is sighted from ranger stations A and B. The bearing of the fire from station A is N35E, and the bearing of the fire from station B is N49W. Station A is 1.3 miles due west of station B.

a) How far is the fire from each station?

b) At fire station C, which is 1.5 miles from A, there is a helicopter that can be used to drop water on the fire. If the bearing of C from A is S42E, find the distance from C to the fire, and find the bearing of the fire from

C. Note: A neat labeled diagram is required.

On January 1, 2018, the Excel Delivery Company purchased a delivery van for $57,000. At the end of its five-year service life, it is estimated that the van will be worth $5,400. During the five-year period, the company expects to drive the van 172,000 miles.

Required:
Calculate annual depreciation for the five-year life of the van using each of the following methods.

1. Straight line.
2. Sum-of-the-years’-digits.
3. Double-declining balance.
4. Units of production using miles driven as a measure of output, and the following actual mileage:

Depreciation Methods

A delivery truck costing $19,000 is expected to have a $1,500 salvage value at the end of its useful life of four years or 125,000 miles. Assume that the truck was purchased on January 2. Calculate the depreciation expense for the second year using each of the following depreciation methods: (a) straight-line, (b) double-declining balance, and (c) units-of-production. (Assume that the truck was driven 28,000 miles in the second year.) Round all answers to the nearest dollar.

a. Straight-line	$Answer
b. Double-declining balance	$Answer
c. Units-of-production	$Answer

4. A six-lane freeway (three lanes in each direction) operates at capacity during peak hour. It has 11-ft lanes, 4-ft right shoulders, and there are three ramps within three miles upstream of the segment midpoint and four ramps within three miles downstream of the segment midpoint. The freeway has an AADT of 60,000 veh/day. The traffic stream has 8% heavy vehicles, and it is on rolling terrain with a peak- hour factor of 0.85. It is known that 12% of the AADT occurs in the peak hour and that the directional factor is 0.6. What is the freeway’s LOS?

Car and Truck Expense. (Obj. 3)Keith is self-employed. During 2018, he drove his car a total of 9,169 miles for work. He drove a total of 21,468 miles during the year. His car expenses for the year were as follows.

Business parking and tolls 360

Depreciation 1475

Gas 2557

Insurance 940

License tags 50

Repairs and maintenance 52

5434

a. Compute Keith’s car expense deduction using the standard mileage rate.

b. Compute Keith’s car expense deduction using the actual cost method.

Your small remodeling business has two work vehicles. One is a small passenger car used for job-site visits and for other general business purposes. The other is a heavy truck used to haul equipment. The car gets 25 miles per gallon (mpg). The truck gets 10 mpg. You want to improve gas mileage to save money, and you have enough money to upgrade one vehicle. The upgrade cost will be the same for both vehicles. An upgraded car will get 40 mpg; an upgraded truck will get 12.5 mpg. The cost of gasoline is $3.35 per gallon.

Calculate the annual fuel savings, in gallons, for the truck and car assuming both vehicles are driven 8,500 miles per year. (Round your answers to 2 decimal places, e.g., 32.16.)

Assuming an upgrade is a good idea in the first place, which one should you upgrade? Both vehicles are driven 8,500 miles per year. Truck or Car