A-1 Car Rental is one of the two car rental agencies serving a small regional airport in the U.S. Midwest. Forty per cent (40%) of its customers are airline passengers and the remaining sixty per cent (60%) are dwellers of the small nearby college town who use rental cars for business and leisure trips. The airport is within two miles from campus and approximately six miles from the city center. It is easy to reach by car, taxi, or city bus.
You are a manager of A-1 Car Rental. Your fleet consists of 72 cars, of which 47 fall into the “economy” class and 25 in the “luxury” class. Whenever demand for cars in some class exceeds the number of cars available, additional vehicles can be delivered from the nearest company hub in the state capital 70 miles away. Alternatively, some customers unable to rent an economy-class car may be upgraded to a luxury-class car at no extra cost to them.
Your only competitor at this location has a more sophisticated system of car category tiers, which consist of Compact, Economy, Mid-size, and Large cars.
In order to better understand your unit’s operating environment, you are asked to provide an estimate of the demand equation that would account for various factors that affect your customer traffic. Estimating the demand equation is useful for future analysis of your unit’s performance.
Review the data file that your staff has put together for this analysis and identify which variables you would like to include in your demand function. For each variable you choose to include, provide reasons why you expect it to be important for your analysis. Also explain the expected sign of the relationship between the proposed independent variable and the dependent variable.
Estimate the demand function for A-1 Car Rental using regression techniques. Make sure you include an interpretation of all coefficients of your estimated demand function.
Submit a report (Word document) and your analysis (Excel file) for grading.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more