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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
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-squareStep by Step Solution
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