Regression Statistics of the Acme corp.
The Acme corp. wished to predict maintenance costs per year on its factory equipment by knowledge of the equipment’s age. The following data was collected which yielded the regression equation: (see the printout)
SUMMARY OUTPUT
Regression Statistics
Multiple R ( )
R Square 0.843041
Adjusted R Square 0.790722
Standard Error ( )
Observations 5
ANOVA
df SS MS F Significance F
Regression 1 ( ) 1394491 16.1133 0.027751
Residual 3 259628.6 86542.86
Total 4 1654120
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept -158.095 299.9618 -0.52705 0.634646 -1112.71 796.5172 -1112.71 796.5172
X Variable 1 235.2381 58.60239 ( ) 0.027751 48.73913 421.7371 48.73913 421.7371
Age Maintenance Costs
6 920
7 1810
1 230
3 400
6 1260
Question 1)
What is the point estimate of maintenance cost for a machine that is 3 years old?
Question 2)
Determine the missing values in the printout given below.