The president of a company is concerned about the cost of re

The president of a company is concerned about the cost of repairing manufacturing machinery due to old age of the machines. The company gathered data about last month costs for repairs and the ages (in months) of the plant

Solution

Is there a linear relationship between the age of a machine and its repair cost? Explain.
Yes, because the r indicates a strong positive linear relationship. The p value is 0.00013 which is less than the alpha value of 0.05. Hence, there is a correlation.

What is the coefficient of determination and discuss what this statistics tell you.
56.59% of the dependent variable (repair cost) is explained by the independent variable (age).

What is the predicted repair cost for a completely new machine?
As long as 0 is in the data, $114.85 is the average repair cost.

The average repair cost is $395.21. Is the regression model a good fit?
No, it would have to be extremely old. It