A B C D E F

1 A Bike rental company is intrested in extending its services to a new city. The company has the
2 weekly demand data from 27 cities. The demand for weekly rides depends upon Price per week,
3 Population of city, Monthly income of riders, Average parking rates per month.
4
5 1. Try to estabilish a model which can estimate the demand for any new city.
6
7 2. Estimate the demand for a city which has Price per week $80, Population of city 16,30,000,
8 Monthly income of riders $16,200, Average parking rates per month $105.
9
10
11
12
 Demand estimation using linear regression

Y
City Number of weekly riders
1 192,000
2 190,400
3 191,200
4 177,600
5 176,800
6 178,400
7 180,800
8 175,200
9 174,400
10 173,920
11 172,800
12 163,200
13 161,600
14 161,600
15 160,800
16 159,200
17 148,800
18 115,696
19 147,200
20 150,400
21 152,000
22 136,000
23 126,240
24 123,888
25 126,080
26 151,680
27 152,800
Average 160,026

Demand 129540.804576199
timation using linear regression

X1 X2 X3 X4
Price per week Population of city Monthly income of riders Average parking rates per month
$15 1,800,000 $5,800 $50
$15 1,790,000 $6,200 $50
$15 1,780,000 $6,400 $60
$25 1,778,000 $6,500 $60
$25 1,750,000 $6,550 $60
$25 1,740,000 $6,580 $70
$25 1,725,000 $8,200 $75
$30 1,725,000 $8,600 $75
$30 1,720,000 $8,800 $75
$30 1,705,000 $9,200 $80
$30 1,710,000 $9,630 $80
$40 1,700,000 $10,570 $80
$40 1,695,000 $11,330 $85
$40 1,695,000 $11,600 $100
$40 1,690,000 $11,800 $105
$40 1,630,000 $11,830 $105
$65 1,640,000 $12,650 $105
$102 1,635,000 $13,000 $110
$75 1,630,000 $13,224 $125
$75 1,620,000 $13,766 $130
$75 1,615,000 $14,010 $150
$80 1,605,000 $14,468 $155
$86 1,590,000 $15,000 $165
$98 1,595,000 $15,200 $175
$87 1,590,000 $15,600 $175
$77 1,600,000 $16,000 $190
$63 1,610,000 $16,200 $200
$49.93

$80 1,630,000 $16,200 $105

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.972364342996725
R Square 0.945492415531452
Adjusted R Sq 0.93558194562808
Standard Error 5406.37016803512
Observations 27

ANOVA
df SS MS F Significance F
Regression 4 11154120959.2 3E+09 95.4034 1.4386231E-13
Residual 22 643034444.664 3E+07
Total 26 11797155403.9

Coefficients Standard Error t Stat P-value Lower 95%

Intercept 100222.560661716 135917.874047 0.737 0.46869 -181653.85777
Price per week -689.522722819171 95.4028672832 -7.227 3.05E-07 -887.37615988
Population of c 0.0549412800098363 0.07233914863 0.759 0.45562 -0.0950809321
Monthly income -1.30136686658671 1.62745002141 -0.8 0.43247 -4.6764916354
Average parki 152.456367263701 73.8629623667 2.064 0.051 -0.7260411042

RESIDUAL OUTPUT

Observation Predicted Number of weekly riders Residuals

1 188848.914374116 3151.08562588
2 187778.954827383 2621.04517262
3 188493.832326604 2706.1676734
4 181358.585851734 -3758.58585173
5 179755.161668129 -2955.16166813
6 180691.27153467 -2291.27153467
7 178521.219846971 2278.78015303
8 174553.05948624 646.94051376
9 174018.079712874 381.920287126
10 173435.69560241 484.30439759
11 173150.814249827 -350.814249827
12 164482.889366945 -1282.88936695
13 163981.425984609 -2381.42598461
14 165916.902439586 -4316.90243959
15 166144.204502538 -5344.20450254
16 162808.68669595 -3608.68669595
17 145052.910594968 3747.08940503
18 119572.666883623 -3876.66688362
19 139910.413330531 7289.58666947
20 139417.941525061 10982.0584749
21 141874.828954839 10125.1710452
22 138044.058352066 -2044.05835207
23 133915.039314617 -7675.03931462
24 127179.763340156 -3291.76334016
25 133969.260144483 -7889.26014448
26 143180.198935093 8499.80106491
27 154647.22015398 -1847.22015398
 Upper 95% Lower 95.0% Upper 95.0%
382098.979 -181653.8578 382098.97909
-491.669286 -887.3761599 -491.6692858
0.20496349 -0.095080932 0.2049634921
2.0737579 -4.676491635 2.0737579022
305.638776 -0.726041104 305.63877563