Problem: A trucking company wants to predict the yearly maintenance expense (Y) for a truck using the number of miles driven during the year (X1) and the age of the truck (X2 in years) at the beginning of the year. Please see the attached file, note that each observation corresponds to particular truck.
Yearly Maintenance Expense for Randomly Selected Trucks
| Truck |
Maintenance_Expense |
Miles_Driven |
Age_of_Truck |
| 1 |
$908.56 |
10,500 |
10 |
| 2 |
$751.12 |
9,700 |
7 |
| 3 |
$793.55 |
9,200 |
8 |
| 4 |
$619.61 |
8,300 |
9 |
| 5 |
$380.11 |
6,500 |
5 |
| 6 |
$368.72 |
4,500 |
2 |
| 7 |
$235.32 |
3,500 |
2 |
| 8 |
$174.93 |
2,200 |
3 |
| 9 |
$256.30 |
1,800 |
2 |
a. Formulate and estimate a multiple regression model using the given data. Interpret each of the estimated regression coefficients.
b. Compute and interpret the standard error of estimate s and the coefficient of determination R for these data.
c. Be sure to interpret the standard error and R2 values.