Cost Forecast Modeling. Elliot Ness, manager of product packaging at Chicago Tool & Die, Inc., is evaluating the cost effectiveness of the preventive maintenance program in his department. Ness believes that the monthly downtime of the packaging line due to equipment breakdown is related to the hours spent each month on preventive maintenance.
A. Write an equation to predict next month's downtime using the symbols D = downtime, M = preventive maintenance, t = time, a0 = constant term, a1 = regression slope coefficient, and assuming that downtime in the forecast month decreases by the same percentage as preventive maintenance increased during the preceding month.
B. If 75 hours were spent last month on preventive maintenance and this month's downtime was 50 hours, what should downtime be next month if preventive maintenance this month is 90 hours? Use the equation developed in part A.

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The Answer of Cost Forecast Modeling. Elliot Ness, manager of product packaging at Chicago Tool & Die, Inc., is evaluating the cost effectiveness of the preventive maintenance program in his department. Ness believes that the monthly downtime of the packaging line due to equipment breakdown is related to the hours spent each month on preventive maintenance.
A. Write an equation to predict next month's downtime using the symbols D = downtime, M = preventive maintenance, t = time, a0 = constant term, a1 = regression slope coefficient, and assuming that downtime in the forecast month decreases by the same percentage as preventive maintenance increased during the preceding month.
B. If 75 hours were spent last month on preventive maintenance and this month's downtime was 50 hours, what should downtime be next month if preventive maintenance this month is 90 hours? Use the equation developed in part A.