In 2008, Northern Airlines merged with Southeast Airlines to create the fourth largest U.S. carrier. Company was headed by Stephan Ruth, who concern is to create a financially strong company and he believes that it can be possible by reducing the maintenance costs. It is noted that, Southeast airline had new/ young fleet compared to northern airlines. In concern to this Ruth has noted that there has been significant difference between in reported B737-200 maintenance cost both in airframe and engines areas between Northern Airlines and Southeast Airlines. To ascertain this issue Ruth assigned Peg Young, vice president for operations and maintenance. The task of the Peg Young is to report Ruth with answer along with quantitative and graphical descriptions about the following: 1) Whether the average fleet age was correlated to direct airframe maintenance cost 2) Whether there was a relationship between average fleet age and direct engine maintenance costs. The fleet data are shown in the following table. Airframe cost data and engine cost data are both shown paired with fleet average age.
It is known that fleet ages of southeast airline are lesser than the Northern fleet. Hence, we will check the correlation between averag...