Companies in the us carrertal market vary greatly interms of the size of the the

Question

Companies in the us carrertal market vary greatly interms of the size of the the number of locations, and annual revenue. In 2011 Hertz had 320,000 cars smaller andamwal revenue of approximately $4.2baon. The folowing data show the number of casin service (1000s) and the annual revenue (smlions) for six car rental companies (Auto Rental News website, August 7, 2012 Cars (1000) Revenue Smillions U Save Auto Rental system, Inc. Payless Car Rental system, Inc. ACE Rent A Car 90 Rent-A-Wreck of America Triangle Rent-A car Aff required, enter negative values as negative numbers, select a scatter dagram withthe number of cars in service asthe independent vanatle.

Explanation / Answer

following information has been generated using ms-excel

(b) positive linear relationship

(c) y=-17+12.96*x

(d) since the slope of the regression equaion is 12.96 , so for every additional car in service will increase the revenue with 12.96

(e) for x=11 thousand, y=-17+12.96*11=125.6 million

cars(x) revenue(y) y-est 11.5 118 132.1063 10 135 112.657 9 100 99.69085 5.5 37 54.30915 4.2 40 37.45309 3.3 32 25.78351 mean= 7.25 77 sd 3.072865 41.96824196 cov(x,y)= 122.4333 corr(x,y)=r= 0.94937 b=r*sd(y)/sd(x)= 12.9662 a=mean(y)-b*mean(x)= -17.0049

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