6. A local authority is investigating the cost of reconditioning its incinerators. Data from 10 randomly chosen incinerators were collected. The variables monitored were the operating time \(x\) (in thousands of hours) since last reconditioning and the reconditioning cost \(y\) (in \(\pounds 1000\) ). None of the incinerators had been used for more than 3000 hours since last reconditioning.
The data are summarised below,
$$\Sigma x = 25.0 , \Sigma x ^ { 2 } = 65.68 , \Sigma y = 50.0 , \Sigma y ^ { 2 } = 260.48 , \Sigma x y = 130.64 .$$
- Find \(\mathrm { S } _ { x x } , \mathrm {~S} _ { x y } , \mathrm {~S} _ { y y }\).
- Calculate the product moment correlation coefficient between \(x\) and \(y\).
- Explain why this value might support the fitting of a linear regression model of the form \(y = a + b x\).
- Find the values of \(a\) and \(b\).
- Give an interpretation of \(a\).
- Estimate
- the reconditioning cost for an operating time of 2400 hours,
- the financial effect of an increase of 1500 hours in operating time.
- Suggest why the authority might be cautious about making a prediction of the reconditioning cost of an incinerator which had been operating for 4500 hours since its last reconditioning.