Question

Required information The following information applies to the questions displayed belowj Bargain Rental Car offers rental cars in an off-airport location near a major tourist destination in California. Management would like to better understand the variable and fixed portions of it car washing costs. The company operates Its own car wash facility in which each rental car that is returned is thoroughly cleaned before being released for rental to another customer. Management believes that the variable portion of its car washing costs relates to the number of rental returns. Accordingly, the following data have been compiled: Car Wash Costs Rental Returns Month 2,40e 2,500 2,700 2,98e 1,6ee $ 12,988 $ 11,400 $ 13,7e0 15,8ee $ 22,508 $ 21,800 $ 21,200 $ 22,400 19,980 $ 18,308 12,808 January February March April 3,608 5,ee0 5,500 5,408 4,780 3,9e0 2,200 May June July August September October November December 2,700 2. Using least-squares regression, estimate the variable cost per rental return and the menthly fixed cost incurred to wash cars. What is the R rounded to the nearesSt whole percentage? (Round Fixed cost to the nearest whole dollar amount and the Variable cost per unit to 2 decimal places.) Fixed cost per month

Answer 1

		X	Y
		Rental Returns	Car wash cost							1
		2400	$10,600
		2500	$12,900
		2700	$11,400
		2900	$13,700
		3600	$15,800
		5000	$22,500
		5500	$21,800
		5400	$21,200
		4700	$22,400
		3900	$19,900
		2200	$10,300
		2700	$12,800
	Click "Data"
	Click "Data Analysis"
	Select "Regression" tool
	Click"OK"
	Input y_Range (Car Wash Costs)
	Input x_Range (Rental returns)
	Click "OK"
	Car Wash Cost (Y)=Intercept(a)+X Variable(b)*Rental Returns(X)
	Intercept	2460.78
	X variable	3.81
	Y=2460.78+3.81X
	Fixed Cost per month	$2,460.78
	Variable Cost per rental return	$3.81
	R square	0.917799138
	SUMMARY OUTPUT
	Regression Statistics
	Multiple R	0.958018339
	R Square	0.917799138
	Adjusted R Square	0.909579052
	Standard Error	1479.203535
	Observations	12
	ANOVA
		df	SS	MS	F	Significance F
	Regression	1	244302069	244302069	111.6532254	9.57009E-07
	Residual	10	21880430.97	2188043.097
	Total	11	266182500
		Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
	Intercept	2460.781691	1375.315076	1.789249412	0.103853771	-603.6112634	5525.175	-603.611	5525.175
	X Variable 1	3.810818844	0.360647285	10.56660898	9.57009E-07	3.007246616	4.614391	3.007247	4.614391