Required Information The following information applies to the questions displayed below.) 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: Rental Month Returns January 2,380 February 2,421 March 2,586 April 2,725 May 2,968 3,281 July 3,353 August 3,489 September 3,057 October 2,976 November 2,735 December 2,983 June Car Wash Costs $10,825 $11,865 $11,332 $12,422 $13,850 $14,419 $14,935 $15,738 $13, 563 $11,989 $12,683 $13,796 Required: 1. Prepare a scattergraph plot. (Place car wash costs on the vertical axis and rental returns on the horizontal axis.) Instructions: 1. On the graph below, use the point tool (January) to plot rental returns on the horizontal axis and car wash costs on the vertical axis. 2. Repeat the same process for the plotter tools (February to December). 3. To enter exact coordinates, click on the point and enter the values of x and y. 4. To remove a point from the graph, click on the point and select delete option. Januar Car Wash Costs Februar March 515,000 April $10.00 May 55.000 June SE 1,900 2.00 3.00 4000 50.0 7.000 July Rental Returns Required information The following information applies to the questions displayed below) 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 Rental Month Returns January 2,380 February 2,421 March 2,586 April 2,725 May 2,968 June 3,281 July 3,353 August 3,489 September 3,057 October 2,876 November 2,735 December 2,983 Car Wash Costs $10,825 $11,965 $11,332 $12,422 $13,850 $14,419 $14,935 $ 15,738 $13,563 $11,889 $12,683 $13,796 2. Using esults of the regression analysis provided in the separate handout on Sakal, estimate the variable cost per rental return and the monthly fixed cost incurred to wash cars. (Round Fixed cost to the nearest whole dollar amount and the Variable cost per unit to 2 decimal places.) Fixed cost per month Variable cost per rental return S 1,377 S 4.04 Required information The following information applies to the questions displayed below.) 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: Rental Month Returns January 2,380 February 2, 421 March 2,586 April 2,725 May 2,968 June 3,281 July 3, 353 August 3,489 September 3,057 October 2,876 November 2,735 December 2,983 Car Wash Costs $10,825 $11,865 $11,332 $12, 422 $13,850 $14,419 $14,935 $15, 738 $ 13,563 $11,889 $12,683 $13,796 Which of the following statements correctly interprets the regression results relative to the statistical significance of the relationship between the Car Wash Costs and the Rental Returns? Multiple Choice The relationship is statistically significant because t Stat 9.387 > Threshold Value of the Stat 223 The relationship is statistically significant because t Stat 9.387 > Squared 0.9126 The relationship is not statistically significant because t Stat 9.387 > Threshold Value of the t Stat 2.23 The relationship is not statistically significant because R Squared 0.9126
