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.
