An application of regression analysis in the pricing of maintenance contracts
David Gale Johnson · International Journal of Mathematical Education in Science and Technology · 1976
When teaching the use of mathematical and statistical techniques to management students it is important that meaningful real‐life situations are presented to illustrate the technique in question. This paper describes an application of multiple regression analysis to the problem of pricing maintenance contracts for refrigeration equipment and demonstrates the main stages in the building of a multiple regression model. The model arrived at is only partially successful, for, although the time involved in routine servicing work is fairly well explained, the emergency or breakdown element proves much more difficult to pinpoint and little improvement can be made upon an overall average time for emergency repair work.