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    Linear regression model - auditors

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    The auditor of a local trucking company suspects that employees are siphoning gas from trucks into their cars, but she has never seen it happen. She is able to obtain odometer readings from trucks. She is aware of another trucking company that does not have this problem ans uses the same age model of trucks. A random sample of trucks produced the following data. She decided to use a linear regression model to estimate gas usage. Is a straight line the appropriate model? Use alpha = .05.

    Miles Driven | 2000 2500 5000 2500 5000 6000 4000 5000
    Gallons Used | 221 248 493 257 503 610 392 491

    ( Hint: convert miles to thousands of miles . For example, 2500 is 2.5.)

    Y hat = 12.8 +.0973X
    X = miles driven
    Y = Gallons used
    SSE = 652

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    Solution Summary

    A linear regression model is used to estimate gas usage.