A company that offers cars for rent wants to better understand costs. When cars are...
70.2K
Verified Solution
Link Copied!
Question
Accounting
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:
MonthRental ReturnsCleaning Costs
January2,300$10,300
February2,500$12,800
March2,700$11,100
April2,900$13,200
May3,600$15,500
June4,900$21,900
July5,500$21,500
August5,300$20,400
September4,600$22,100
October3,800$19,000
November2,100$10,000
December2,600$11,800
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...67 = 67)) Fixed cost per month Variable cost per rental retum R-square
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
