Discuss the below:
Q: The materials handling manager of a manufacturing company is trying to forecast the cost of maintenance for the company's fleet of over-the-road tractors. The manager believes that the cost of maintaining the tractors increases with their age. The following data was collected:
|
Observation
|
Age (years)
|
Yearly Maintenance Cost ($)
|
Observation
|
Age (years)
|
Yearly Maintenance Cost ($)
|
|
1
|
5.5
|
619
|
10
|
5
|
1,194
|
|
2
|
4.5
|
1,049
|
11
|
1.5
|
163
|
|
3
|
5.5
|
1,033
|
12
|
1.5
|
182
|
|
4
|
4
|
495
|
13
|
6
|
764
|
|
5
|
5
|
723
|
14
|
7
|
1,373
|
|
6
|
5
|
681
|
15
|
2
|
978
|
|
7
|
6
|
890
|
16
|
2
|
466
|
|
8
|
6
|
1,522
|
17
|
2
|
549
|
|
9
|
6.5
|
987
|
|
|
|
Use POM for Windows' least squares-linear regression module to develop a relationship to forecast the yearly maintenance cost based on the age of a tractor.