8:01 PM Tue Feb 25 * 95% stats 272 hw chpt 14..JPG 14.2 Least Squares Method nol goenil elamiA e 613 value of 2.5 to the average speed of execution rating for the other 10 brokerage firms that were surveyed, what value would you predict for the overall satisfaction rating? 9. Companies in the U.S. car rental market vary greatly in terms of the size of the fleet, the number of locations, and annual revenue. In 2011 Hertz had 320,000 cars in service and annual revenue of approximately $4.2 billion. The following data show the number of cars in service (1000s) and the annual revenue ($ millions) for six smaller car rental companies (Auto Rental News website, August 7, 2012). Cars Revenue Company (1000s) ($ millions) U-Save Auto Rental System, Inc. Payless Car Rental System, Inc. ACE Rent A Car Rent-A-Wreck of America 11.5 118 135 10.0 9.0 100 37 Triangle Rent-A-Car Affordable/Sensible 5.5 4.2 40 3.3 32 Develop a scatter diagram with the number of cars in service as the independent variable. a. b. What does the scatter diagram developed in part (a) indicate about the relationship between the two variables? Use the least squares method to develop the estimated regression equation. d. For every additional car placed in service, estimate how much annual revenue will change. Fox Rent A Car has 11,000 cars in service. Use the estimated regression equation c. e. developed in part (c) to predict annual revenue for Fox Rent A Car. 10. On March 31, 2009, Ford Motor Company's shares were trading at a 26-year low of $2.63. Ford's board of directors gave the CEO a grant of options and restricted shares with an es- timated value of $16 million. On April 26, 2011, the price of a share of Ford had increased to $15.58, and the CEO's grant was worth $202.8 million, a gain in value of $186.8 million. The following table shows the share price in 2009 and 2011 for 10 companies, the stock- option and share grants to the CEOS in late 2008 and 2009, and the value of the options and grants in 2011. Also shown are the percentage increases in the stock price and the percent- age gains in the options values (The Wall Street Journal, April 27, 2011). Options and Grants Options and Grants Value % Gain Stock Price Increase Stock Value in Price