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53. Jensen Tire $\&$ Auto is in the process of deciding whether to purchase a maintenancecontract for its new computer wheel alignment and balancing machine. Managers feelthat maintenance expense should be related to usage, and they collected the followinginformation on weekly usage (hours) and annual maintenance expense (in hundreds ofdollars.a. Develop the estimated regression equation that relates annual maintenance expense toweekly usage.b. Test the significance of the relationship in part (a) at a .05 level of significance.c. Jensen expects to use the new machine 30 hours per week. Develop a 95$\%$ predictioninterval for the company's annual maintenance expense.d. If the maintenance contract costs $\$ 3000$ per year, would you recommend purchasingit? Why or why not?

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Intro Stats / AP Statistics

Chapter 12

Simple Linear Regression

Linear Regression and Correlation

Temple University

University of North Carolina at Chapel Hill

Idaho State University

Lectures

0:00

01:02

A manufacturer of car tyre…

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