[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 its car washing costs. The company operates its own 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 return Accordingly, the following data have been compiled: Month January February March April May June July August September Rental Returns 2,380 2,421 2,586 2,725 2,968 3,281 3,353 3,489 3 057 Car Wash Costs $ 10,825 $ 11,865 $ 11,332 $ 12,422 $ 13,850 $ 14,419 $ 14,935 $ 15,738 $ 13 563
[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 its car washing costs. The company operates its own 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 return Accordingly, the following data have been compiled: Month January February March April May June July August September Rental Returns 2,380 2,421 2,586 2,725 2,968 3,281 3,353 3,489 3 057 Car Wash Costs $ 10,825 $ 11,865 $ 11,332 $ 12,422 $ 13,850 $ 14,419 $ 14,935 $ 15,738 $ 13 563
Essentials of Business Analytics (MindTap Course List)
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Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
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Chapter11: Linear Optimization Models
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Problem 5P: Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver,...
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![Exercise 6A-2 (Static) Least-Squares Regression [LO6-11]
[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 its 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 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
El
June
3,281
July
3,353
August
3,489
September
3,057
October
2,876
November
2,735
2,983
December
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
Exercise 6A-2 Part 2 (Static)
2. Using least-squares regression, 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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5687fb83-fd7a-4439-8d0d-6db0a7688176%2F16b5f1d6-fd7f-4abc-b6d4-99091c8e12e3%2Fxluzun8_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 6A-2 (Static) Least-Squares Regression [LO6-11]
[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 its 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 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
El
June
3,281
July
3,353
August
3,489
September
3,057
October
2,876
November
2,735
2,983
December
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
Exercise 6A-2 Part 2 (Static)
2. Using least-squares regression, 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
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