Question

A company that offers cars for rent wants to better understand costs. When cars are returned, they are thoroughly cleaned before being rented again. The manager believes that the variable portion of the cleaning costs relates to the number of rental returns. She has gathered the following data:

Month January February March April May June July August September October November December Rental Returns 2,500 2,500 2,800 3,100 3,700 5,200 5,600 5,700 4,800 4,500 2,300 3,100 Cleaning Costs $ 11,700 $ 13,500 $ 12,500 $ 15,300 $ 16,900 $ 24,700 $ 22,900 $ 23,900 $ 23,500 $ 23,200 $ 11,400 $ 16,700 Using least-squares regression, estimate the variable cost per rental return and the monthly fixed cost incurred to clean cars. What is the R2 rounded to the nearest whole percentage? (Round Fixed cost to the nearest whole dollar amount and the Variable cost per unit to 2 decimal places. Enter the % in whole numbers (i.e. .67 = 67)) Fixed cost per month Variable cost per rental return R-square

Answer 1

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OBJECT: 09/5) Subject Rental cleaning + (xys K3 *43) Return costs (X) (10000)| (10000) (10000) Jan 2500 11700 2925 13689 feb 2500 13500 3375 625 1822 March 2800 12.500 3500 784 I5685 310 15300 4743 961 23409 May 3700 16900 6253 1369 28561 June s200 24700 12844 2704 6,009 July S600 22900 122824 3136 S2441 August | 5700 23900 13623 3249 S7120 sept: 48 ou 23500 11280 2304 S5205 act 4500 23400 10440 2025 s3824 NOV. 2300 Il you 2622 529 2996 Dec. 3loo 16700 si77 961 23889 F E 458001 816800 | 89606 19272 435639 Rsquared: nicexy) (Exey) F[mex2=tex]f naga-tay?J → [2689606000)) = {(45860)6816200)] 712(+9272009) - (4980077| 1244356340000 euro 177.994 ) RPS GROID or CS Scanned with CamScanner

a= Total fixed cost Least souare Method: . Regeration line y=a+bx y= total cost b= nexy - (Ex) (E4) n (Ex2) - (Ex)2 b- Vasiable cost Perlevel of activity. x = level of Activity a= EyxEx2 - (Ex) (Exy) nex² - (Ex)² OR a= rey-bex [Ey - bex (12; D 8960600vo) - (45800 (216200) (12 x 192720000) - (2097640000 13.9570 Variable cost Per level of Activity le iza Q (fixed cost [6216200) (192720000)] - [c45800) 896060000] [ 12 (192720000) – 620976 40000)] te 142914:02 Regexotion line → y= atbx y = $2914.02+ 3-95X Meano fixed Cost Per month » $ 2914.02 variable Cost Per Rental Return $3.9570 R-Souare * *77.997 & 2 CS Scanned with CamScanner