A Survey Is Conducted to Determine Whether the Age of Car

question 20

Essay

A survey is conducted to determine whether the age of car influences the annual maintenance cost. A sample of 10
cars is selected and the data is shown below. $$\begin{array} { | c | c | } \hline \text { Age of car (months) } \boldsymbol { x } & \begin{array} { c } \text { Annual Maintenance } \\\text { Cost (\$) } \boldsymbol { y }\end{array} \\\hline 3 & 120 \\\hline 5 & 115 \\\hline 6 & 135 \\\hline 7 & 290 \\\hline 9 & 275 \\\hline 10 & 300 \\\hline 11 & 350 \\\hline 13 & 475 \\\hline 14 & 500 \\\hline 15 & 550 \\\hline\end{array}$$
a. Develop a scatter chart for these data with age of cars as the independent variable. What does the scatter chart
indicate about the relationship between age of a car and the annual maintenance cost?
b. Use the data to develop an estimated regression equation that could be used to predict the annual maintenance
cost given the age of the car. What is the estimated regression model?

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Definitions:

Categorical Grants

Funding from the federal government to state or local governments for specific purposes and subject to detailed conditions.

New Federalism

A political philosophy of devolution, or the transfer of certain powers from the United States federal government back to the states, initiated in the 1970s.

Unfunded Mandates

Legal requirements or conditions for federal programs that are imposed by Congress on state and local governments without providing federal funding to cover the costs.

Home Rule

Home rule refers to the power granted to political subdivisions by the state to govern themselves with minimal state interference.