7.4 Memo Problem: Truck Maintenance Analysis

To: Analysis Staff
From: Project Management Director
Date: May 27, 2008
Re: Truck maintenance data

Our services have been retained by Metro Area Trucking to analyze the records they have maintained on the trucks in their fleet. The company has locations around the Rochester area, some inside the city limits and some outside the city limits. The director of operations, Ms. Mini V. Driver, at the company has asked that we determine how the different locations affect the maintenance costs on the trucks.

She has provided data on each of the trucks in the fleet. The data includes information on last year’s maintenance expenses for the truck, the mileage of the truck, the age, the type of truck, and whether it is based at one of the in-city or out-of-city locations. As a first look at the data, you should separate the data into trucks that are based in the city and trucks outside the city. Mini Driver suspects that mileage and age are the most important factors, so use everything at your disposal to explain how these two quantities affect the maintenance costs. I need a full report, including graphs, tables, and formulas, as well as an analysis and explanation of what each piece of information means.

Attachment: Data file C07 TruckData.xls [.rda]