Jensen Tire & Auto is in the process of deciding whether to purchase a maintenance contract for its new computer wheel alignment and balancing machine. Managers feel that maintenance expense should be related to usage, and they collected the following information on weekly usage (hours) and annual maintenance expense (in hundreds of dollars).
$\begin{matrix} \text{Weekly Usage} & \text{Annual}\\ \text{(hours)} & \text{Maintenance Expense}\\ \hline \text{13} & \text{17.0}\\ \text{10} & \text{22.0}\\ \text{20} & \text{30.0}\\ \text{28} & \text{37.0}\\ \text{32} & \text{47.0}\\ \text{17} & \text{30.5}\\ \text{24} & \text{32.5}\\ \text{31} & \text{39.0}\\ \text{40} & \text{51.5}\\ \text{38} & \text{40.0}\\ \end{matrix}$
Test the significance of the relationship in part (a) at a .05 level of significance.

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Solution B

Answered 7 months ago

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Tests for significance of relationship have hypotheses:

H_0:\beta_1=0\qquad vs.\qquad H_a:\beta_1\neq 0.

Relationship between $x$ and $y$ is $y=\beta_0+\beta_1x+\epsilon$ , with standard assumptions on $\epsilon$ . These hypotheses can be tested with $t$ , $F$ and $\rho$ tests. This solution will use $t$ statistic.

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computer science

Match given term to the appropriate definition.

Key term	Definition
Insurance Premium	A physician, typically a family practitioner or an internist, who serves as the primary care physician for an individual. This physician is responsible for evaluating and determining the course of treatment or services, as well as for deciding whether or not a specialist should be involved in care.
	A type of health insurance coverage that controls the care of each subscriber (or insured person) by using a primary care provider as a central health care supervisor.
	A type of health insurance that uses a primary care physician, also known as a gatekeeper, to manage all health care services for an individual.
	A policy that covers loss or injury to a third party caused by the insured or something belonging to the insured.
	The total management of an individual's well-being by a health care professional.
	An insurance company pays a provider one flat fee to cover the entire course of treatment for an individual's condition.
	The agency under the Department of Health and Human Services (DHHS) in charge of regulation and control over services for those covered by Medicare and Medicaid.
	Payment agreements that outline, in a written fee schedule, exactly how much money the insurance carrier will pay the physician for each treatment and/or service provided.
	An extra reduction in the rate charged to an insurer for services provided by the physician to the plan's members.
	The amount of money, often paid monthly, by a policyholder or insured, to an insurance company to obtain coverage.
	Auto accident liability coverage will pay for medical bills, lost wages, and compensation for pain and suffering for any person injured by the insured in an auto accident.
	Agreements between a physician and a managed care organization that pay the physician a predetermined amount of money each month for each member of the plan who identifies that provider as his or her primary care physician.
	A plan that reimburses a covered individual a portion of his or her income that is lost as a result of being unable to work due to illness or injury.
	Individuals who are supported, either financially or with regard to insurance coverage, by others.

business math
Enter the heading and transaction data into the stock record forms and keep a running balance for the exercise.

Pillar's Auto Supply sells a private brand of $48$ -month car batteries, Stock $\#$ $48$ BAT- $2$ X, and keeps a record of each battery sold. The reorder point is $20$ batteries. Transactions for December $1-7$ follow.
$\begin{array}{llr} 12-1 & \text { Sold } & 42 \\ 12-2 & \text { Sold } & 36 \\ 12-3 & \text { Sold } & 53 \\ 12-4 & \text { Received } & 120 \\ 12-4 & \text { Sold } & 36 \\ 12-5 & \text { Sold } & 38 \\ 12-6 & \text { Sold } & 44 \\ 12-7 & \text { Sold } & 21 \end{array}$

Stock Record

Item: Reorder Point:

Stock No: Unit:

Date Quantity Received Quantity Issued Balance

$11-30$ $150$

computer science

Match given term to the appropriate definition.

Key term	Definition
Managed Care	A physician, typically a family practitioner or an internist, who serves as the primary care physician for an individual. This physician is responsible for evaluating and determining the course of treatment or services, as well as for deciding whether or not a specialist should be involved in care.
	A type of health insurance coverage that controls the care of each subscriber (or insured person) by using a primary care provider as a central health care supervisor.
	A type of health insurance that uses a primary care physician, also known as a gatekeeper, to manage all health care services for an individual.
	A policy that covers loss or injury to a third party caused by the insured or something belonging to the insured.
	The total management of an individual's well-being by a health care professional.
	An insurance company pays a provider one flat fee to cover the entire course of treatment for an individual's condition.
	The agency under the Department of Health and Human Services (DHHS) in charge of regulation and control over services for those covered by Medicare and Medicaid.
	Payment agreements that outline, in a written fee schedule, exactly how much money the insurance carrier will pay the physician for each treatment and/or service provided.
	An extra reduction in the rate charged to an insurer for services provided by the physician to the plan's members.
	The amount of money, often paid monthly, by a policyholder or insured, to an insurance company to obtain coverage.
	Auto accident liability coverage will pay for medical bills, lost wages, and compensation for pain and suffering for any person injured by the insured in an auto accident.
	Agreements between a physician and a managed care organization that pay the physician a predetermined amount of money each month for each member of the plan who identifies that provider as his or her primary care physician.
	A plan that reimburses a covered individual a portion of his or her income that is lost as a result of being unable to work due to illness or injury.
	Individuals who are supported, either financially or with regard to insurance coverage, by others.

computer science

Match given term to the appropriate definition.

Key term	Definition
Liability Insurance	A physician, typically a family practitioner or an internist, who serves as the primary care physician for an individual. This physician is responsible for evaluating and determining the course of treatment or services, as well as for deciding whether or not a specialist should be involved in care.
	A type of health insurance coverage that controls the care of each subscriber (or insured person) by using a primary care provider as a central health care supervisor.
	A type of health insurance that uses a primary care physician, also known as a gatekeeper, to manage all health care services for an individual.
	A policy that covers loss or injury to a third party caused by the insured or something belonging to the insured.
	The total management of an individual's well-being by a health care professional.
	An insurance company pays a provider one flat fee to cover the entire course of treatment for an individual's condition.
	The agency under the Department of Health and Human Services (DHHS) in charge of regulation and control over services for those covered by Medicare and Medicaid.
	Payment agreements that outline, in a written fee schedule, exactly how much money the insurance carrier will pay the physician for each treatment and/or service provided.
	An extra reduction in the rate charged to an insurer for services provided by the physician to the plan's members.
	The amount of money, often paid monthly, by a policyholder or insured, to an insurance company to obtain coverage.
	Auto accident liability coverage will pay for medical bills, lost wages, and compensation for pain and suffering for any person injured by the insured in an auto accident.
	Agreements between a physician and a managed care organization that pay the physician a predetermined amount of money each month for each member of the plan who identifies that provider as his or her primary care physician.
	A plan that reimburses a covered individual a portion of his or her income that is lost as a result of being unable to work due to illness or injury.
	Individuals who are supported, either financially or with regard to insurance coverage, by others.

computer science

Match given term to the appropriate definition.

Key term	Definition
Dependents	A physician, typically a family practitioner or an internist, who serves as the primary care physician for an individual. This physician is responsible for evaluating and determining the course of treatment or services, as well as for deciding whether or not a specialist should be involved in care.
	A type of health insurance coverage that controls the care of each subscriber (or insured person) by using a primary care provider as a central health care supervisor.
	A type of health insurance that uses a primary care physician, also known as a gatekeeper, to manage all health care services for an individual.
	A policy that covers loss or injury to a third party caused by the insured or something belonging to the insured.
	The total management of an individual's well-being by a health care professional.
	An insurance company pays a provider one flat fee to cover the entire course of treatment for an individual's condition.
	The agency under the Department of Health and Human Services (DHHS) in charge of regulation and control over services for those covered by Medicare and Medicaid.
	Payment agreements that outline, in a written fee schedule, exactly how much money the insurance carrier will pay the physician for each treatment and/or service provided.
	An extra reduction in the rate charged to an insurer for services provided by the physician to the plan's members.
	The amount of money, often paid monthly, by a policyholder or insured, to an insurance company to obtain coverage.
	Auto accident liability coverage will pay for medical bills, lost wages, and compensation for pain and suffering for any person injured by the insured in an auto accident.
	Agreements between a physician and a managed care organization that pay the physician a predetermined amount of money each month for each member of the plan who identifies that provider as his or her primary care physician.
	A plan that reimburses a covered individual a portion of his or her income that is lost as a result of being unable to work due to illness or injury.
	Individuals who are supported, either financially or with regard to insurance coverage, by others.

1/4

computer science

Match given term to the appropriate definition.

Key term	Definition
Insurance Premium	A physician, typically a family practitioner or an internist, who serves as the primary care physician for an individual. This physician is responsible for evaluating and determining the course of treatment or services, as well as for deciding whether or not a specialist should be involved in care.
	A type of health insurance coverage that controls the care of each subscriber (or insured person) by using a primary care provider as a central health care supervisor.
	A type of health insurance that uses a primary care physician, also known as a gatekeeper, to manage all health care services for an individual.
	A policy that covers loss or injury to a third party caused by the insured or something belonging to the insured.
	The total management of an individual's well-being by a health care professional.
	An insurance company pays a provider one flat fee to cover the entire course of treatment for an individual's condition.
	The agency under the Department of Health and Human Services (DHHS) in charge of regulation and control over services for those covered by Medicare and Medicaid.
	Payment agreements that outline, in a written fee schedule, exactly how much money the insurance carrier will pay the physician for each treatment and/or service provided.
	An extra reduction in the rate charged to an insurer for services provided by the physician to the plan's members.
	The amount of money, often paid monthly, by a policyholder or insured, to an insurance company to obtain coverage.
	Auto accident liability coverage will pay for medical bills, lost wages, and compensation for pain and suffering for any person injured by the insured in an auto accident.
	Agreements between a physician and a managed care organization that pay the physician a predetermined amount of money each month for each member of the plan who identifies that provider as his or her primary care physician.
	A plan that reimburses a covered individual a portion of his or her income that is lost as a result of being unable to work due to illness or injury.
	Individuals who are supported, either financially or with regard to insurance coverage, by others.

business math
Enter the heading and transaction data into the stock record forms and keep a running balance for the exercise.

Pillar's Auto Supply sells a private brand of $48$ -month car batteries, Stock $\#$ $48$ BAT- $2$ X, and keeps a record of each battery sold. The reorder point is $20$ batteries. Transactions for December $1-7$ follow.
$\begin{array}{llr} 12-1 & \text { Sold } & 42 \\ 12-2 & \text { Sold } & 36 \\ 12-3 & \text { Sold } & 53 \\ 12-4 & \text { Received } & 120 \\ 12-4 & \text { Sold } & 36 \\ 12-5 & \text { Sold } & 38 \\ 12-6 & \text { Sold } & 44 \\ 12-7 & \text { Sold } & 21 \end{array}$

Stock Record

Item: Reorder Point:

Stock No: Unit:

Date Quantity Received Quantity Issued Balance

$11-30$ $150$

computer science

Match given term to the appropriate definition.

Key term	Definition
Managed Care	A physician, typically a family practitioner or an internist, who serves as the primary care physician for an individual. This physician is responsible for evaluating and determining the course of treatment or services, as well as for deciding whether or not a specialist should be involved in care.
	A type of health insurance coverage that controls the care of each subscriber (or insured person) by using a primary care provider as a central health care supervisor.
	A type of health insurance that uses a primary care physician, also known as a gatekeeper, to manage all health care services for an individual.
	A policy that covers loss or injury to a third party caused by the insured or something belonging to the insured.
	The total management of an individual's well-being by a health care professional.
	An insurance company pays a provider one flat fee to cover the entire course of treatment for an individual's condition.
	The agency under the Department of Health and Human Services (DHHS) in charge of regulation and control over services for those covered by Medicare and Medicaid.
	Payment agreements that outline, in a written fee schedule, exactly how much money the insurance carrier will pay the physician for each treatment and/or service provided.
	An extra reduction in the rate charged to an insurer for services provided by the physician to the plan's members.
	The amount of money, often paid monthly, by a policyholder or insured, to an insurance company to obtain coverage.
	Auto accident liability coverage will pay for medical bills, lost wages, and compensation for pain and suffering for any person injured by the insured in an auto accident.
	Agreements between a physician and a managed care organization that pay the physician a predetermined amount of money each month for each member of the plan who identifies that provider as his or her primary care physician.
	A plan that reimburses a covered individual a portion of his or her income that is lost as a result of being unable to work due to illness or injury.
	Individuals who are supported, either financially or with regard to insurance coverage, by others.

computer science

Match given term to the appropriate definition.

Key term	Definition
Liability Insurance	A physician, typically a family practitioner or an internist, who serves as the primary care physician for an individual. This physician is responsible for evaluating and determining the course of treatment or services, as well as for deciding whether or not a specialist should be involved in care.
	A type of health insurance coverage that controls the care of each subscriber (or insured person) by using a primary care provider as a central health care supervisor.
	A type of health insurance that uses a primary care physician, also known as a gatekeeper, to manage all health care services for an individual.
	A policy that covers loss or injury to a third party caused by the insured or something belonging to the insured.
	The total management of an individual's well-being by a health care professional.
	An insurance company pays a provider one flat fee to cover the entire course of treatment for an individual's condition.
	The agency under the Department of Health and Human Services (DHHS) in charge of regulation and control over services for those covered by Medicare and Medicaid.
	Payment agreements that outline, in a written fee schedule, exactly how much money the insurance carrier will pay the physician for each treatment and/or service provided.
	An extra reduction in the rate charged to an insurer for services provided by the physician to the plan's members.
	The amount of money, often paid monthly, by a policyholder or insured, to an insurance company to obtain coverage.
	Auto accident liability coverage will pay for medical bills, lost wages, and compensation for pain and suffering for any person injured by the insured in an auto accident.
	Agreements between a physician and a managed care organization that pay the physician a predetermined amount of money each month for each member of the plan who identifies that provider as his or her primary care physician.
	A plan that reimburses a covered individual a portion of his or her income that is lost as a result of being unable to work due to illness or injury.
	Individuals who are supported, either financially or with regard to insurance coverage, by others.

computer science

Match given term to the appropriate definition.

Key term	Definition
Dependents	A physician, typically a family practitioner or an internist, who serves as the primary care physician for an individual. This physician is responsible for evaluating and determining the course of treatment or services, as well as for deciding whether or not a specialist should be involved in care.
	A type of health insurance coverage that controls the care of each subscriber (or insured person) by using a primary care provider as a central health care supervisor.
	A type of health insurance that uses a primary care physician, also known as a gatekeeper, to manage all health care services for an individual.
	A policy that covers loss or injury to a third party caused by the insured or something belonging to the insured.
	The total management of an individual's well-being by a health care professional.
	An insurance company pays a provider one flat fee to cover the entire course of treatment for an individual's condition.
	The agency under the Department of Health and Human Services (DHHS) in charge of regulation and control over services for those covered by Medicare and Medicaid.
	Payment agreements that outline, in a written fee schedule, exactly how much money the insurance carrier will pay the physician for each treatment and/or service provided.
	An extra reduction in the rate charged to an insurer for services provided by the physician to the plan's members.
	The amount of money, often paid monthly, by a policyholder or insured, to an insurance company to obtain coverage.
	Auto accident liability coverage will pay for medical bills, lost wages, and compensation for pain and suffering for any person injured by the insured in an auto accident.
	Agreements between a physician and a managed care organization that pay the physician a predetermined amount of money each month for each member of the plan who identifies that provider as his or her primary care physician.
	A plan that reimburses a covered individual a portion of his or her income that is lost as a result of being unable to work due to illness or injury.
	Individuals who are supported, either financially or with regard to insurance coverage, by others.

1/7

Stock Record
Item:		Reorder Point:
Stock No:		Unit:
Date	Quantity Received	Quantity Issued	Balance
$11-30$			$150$

Stock Record
Item:		Reorder Point:
Stock No:		Unit:
Date	Quantity Received	Quantity Issued	Balance
$11-30$			$150$

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