Introduction to Management Science 12th Edition by Bernard Taylor

Exercise 40

The manager of the Bayville police department motor pool wants to develop a forecast model for annual maintenance on police cars, based on mileage in the past year and age of the cars. The following data have been collected for eight different cars:
a. Using Excel, develop a multiple regression equation for these data.
b. What is the coefficient of determination for this regression equation
c. Forecast the annual maintenance cost for a police car that is 5 years old and will be driven 10,000 miles in 1 year.