Chapter 6 Homework

Required information

Exercise 6A-2 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 of rental returns. Accordingly, the following data have been compiled:

Month	Rental Returns		Car Wash Costs
January	2,500		$	11,900
February	2,500		$	13,600
March	2,800		$	12,700
April	3,100		$	15,600
May	3,700		$	17,100
June	5,200		$	25,100
July	5,600		$	23,100
August	5,700		$	24,400
September	4,800		$	23,700
October	4,500		$	23,800
November	2,300		$	11,600
December	3,100		$	17,400

Exercise 6A-2 Part 1

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.