A regional transit company wants to determine whether there is a relationship between the age of...

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Question

Basic Math

A regional transit company wants to determine whether there is arelationship between the age of a bus and the annual maintenancecost. A sample of 10 buses resulted in the following data:
Age of Bus (years)
Annual Maintenance Cost ($)
1
350
2
370
2
480
2
520
2
590
3
550
4
750
4
800
5
790
5
950
Instructions:
Input the data into an SPSS work sheet making sure that allyour variables are labelled appropriately
Create a scatter plot for these data.
What does the scatter plot indicate about the relationshipbetween the age of a bus and its annual maintenance costs?
What is the correlation coefficient between the age of a busand annual maintenance cost?
Estimate a regression model that could be used to predict theannual maintenance cost given the age of the bus.
What is the equation of the estimated model?
Test whether each of the regression parameters ?₀and ?₁ is equal to zero at the 0.05 level ofsignificance testing.
What is the correct interpretations of these parameters?
How much of the variation in the sample values of annualmaintenance costs does the regression model you estimatedexplain?
What do you predict the annual maintenance cost to be for a 4.5year old bus?
Save all your commands to a syntax file

Answer & Explanation Solved by verified expert

4.3 Ratings (950 Votes)

SPSS OUTPUTa Scatter diagaramFrom the above scatter diagram we can observe that the pointsare scattered from lower left corner to upper right corner Itindicates See Answer

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Age of Bus (years)	Annual Maintenance Cost ($)
1	350
2	370
2	480
2	520
2	590
3	550
4	750
4	800
5	790
5	950