8. The regional transit authority for a major metropolitan area wants to determine whether there is any relationship between the age of a bus and the annual maintenance cost. A sample of 10 buses resulted in the following data. (Use of TI - 83 plus calculator permited given that steps are provided).
Age of the Bus (yrs.) Maintenance Cost ($)
a) Develop the simple regression equation that best fits the data on maintenance costs of the busses.
b) Did the equation you developed provide a good fit to the observed data? Explain with statistical analysis.
c) Using your model, predict the maintenance cost that we should expect on busses that are 4 years old.
The solution provides step by step method for the calculation of regression analysis. Formula for the calculation and Interpretations of the results are also included.