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.
Age of Bus (years)
Maintenance Cost ($)
a. Develop the least squares estimated regression equation.
b. Test to see whether the two variables are significantly related with α _ .05.
c. Did the least squares line provide a good fit to the observed data? Explain.
d. Develop a 95% prediction interval for the maintenance cost for a specific bus that is 4 years old.