Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Unfortunately, your specific data request has been rejected by the franchise owners. However, they have provided a data set that includes a number of useful

Unfortunately, your specific data request has been rejected by the franchise owners. However, they have provided a data set that includes a number of useful variables for the past 52 weeks. The data is in the Excel file and descriptions of the variables are available in your team OneNote as well as below.

Use this data, as best you can, to forecast the demand for "economy" cars in the next four weeks. It would be even better if you could suggest a specific rate that we should charge for the "economy" category to maximize revenue. How many vehicles do you expect to be rented at the rate you are suggesting? Do we need to worry about increasing our fleet if we follow your demand forecast?

In your response, include not only your forecast and response to the questions, but also explain why you have chosen the specific independent variables you have used in your regression model and their expected signs. Be sure to discuss the goodness of fit of your model, and the statistical significance of the regression coefficients.

You should also submit an Excel file (or output from whatever regression software used) showing full results from any analyses.

Regression Statistics
Multiple R 0.95970952
R Square 0.92104236
Adjusted R Square 0.89403054
Standard Error 3.40932766
Observations 52
ANOVA
df SS MS F Significance F
Regression 13 5152.36412 396.335701 34.0977491 6.4494E-17
Residual 38 441.693573 11.6235151
Total 51 5594.05769
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 24.8013626 9.26390344 2.67720435 0.01090065 6.04757051 43.5551546 6.04757051 43.5551546
PownE -0.5190898 0.25998093 -1.9966455 0.05306393 -1.0453936 0.00721412 -1.0453936 0.00721412
PownL 0.20035475 0.12706801 1.57675208 0.12314228 -0.056881 0.4575905 -0.056881 0.4575905
Pcomp 0.09038534 0.1482169 0.60981806 0.54561189 -0.2096641 0.39043478 -0.2096641 0.39043478
session -1.0229758 1.28024077 -0.7990495 0.42922801 -3.6146877 1.56873617 -3.6146877 1.56873617
weather 0.80017554 1.19240971 0.67105755 0.50624267 -1.6137317 3.21408281 -1.6137317 3.21408281
unempl -0.0027721 0.00677991 -0.4088662 0.6849331 -0.0164973 0.01095313 -0.0164973 0.01095313
flightswk 0.09375872 0.12371107 0.75788458 0.45319474 -0.1566813 0.34419869 -0.1566813 0.34419869
cancwk 0.07351325 0.50207499 0.14641885 0.88436476 -0.9428844 1.08991093 -0.9428844 1.08991093
holiday -1.5923715 1.82020967 -0.8748286 0.38716313 -5.2771933 2.09245032 -5.2771933 2.09245032
wrecks 0.0077616 0.13510175 0.05745002 0.95448775 -0.2657376 0.28126079 -0.2657376 0.28126079
Discount 7.09715659 0.89544422 7.92584998 1.4261E-09 5.28442453 8.90988865 5.28442453 8.90988865
Upgrade 2.29540707 0.82841633 2.77083756 0.00860611 0.6183659 3.97244825 0.6183659 3.97244825
TotlAd -0.0005147 0.000421 -1.2225642 0.22902315 -0.001367 0.00033757 -0.001367 0.00033757

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cornerstones of Managerial Accounting

Authors: Maryanne Mowen, Don Hanson, Dan Heitger, David McConomy, Bradley Witt, Jeffrey Pittman

3rd Canadian edition

176530886, 176721231, 978-0176721237

More Books

Students also viewed these Accounting questions

Question

=+Based on this, what model might you use to predict Log10Price?

Answered: 1 week ago

Question

x-3+1, x23 Let f(x) = -*+3, * Answered: 1 week ago

Answered: 1 week ago

Question

1. I try to create an image of the message

Answered: 1 week ago

Question

4. What is the goal of the others in the network?

Answered: 1 week ago