Case problem on North-south airline: Regression Analysis
1. Prepare a Peg Jone's response to Stephen Ruth.© BrainMass Inc. brainmass.com June 3, 2020, 7:28 pm ad1c9bdddf
Please see the attached file.
Peg’s response to Stephen Ruth
Using Excel, four regression equations are developed for the Cost Vs Age. Following are the equations:
For Northern Airlines:
Airframe maintenance cost = 36.097 + Average fleet age * 0.0026
Coefficient of Correlation, r=0.877
Coefficient of Determination, r2 = 0.769
Engine maintenance cost = 20.571 + Average fleet age * 0.0026
Coefficient of Correlation, r=0.783
Coefficient of Determination, r2 = 0.612
It can be seen from the r2 value of 0.769 that there is a moderate relationship between the Air frame maintenance cost and the Air fleet age. This means that Air fleet age determines only 76.9% of variation ...
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