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1. Prepare a simple regression of Operating Expenses as a function of Passengers Prepare a plot of the regression results. Include in your XY scattergram a trendline, R, and regression formula. Be sure the regression formula is not in scientific notation. Be sure your regression line exactly intersects the Yaxis. 2. Prepare a simple regression of Operating revenues as a function of Passengers. Prepare a plot of the regression results. Include in your XY scattergram a trendline, R, and regression formula. Be sure the regression formula is not in scientific notation. Be sure your regression line exactly intersects the Yaxis. 3. Using the regression equations derived in #1 and #2, estimate the number of passengers to be carried for Allegiant to break even. Subtract the Operating expense equation from the Operating revenues equation, plugging in passengers carried until the result is $0. That will be your break-even point, on average, over the years 2011-2020. B D E G Allegiant Travel Company Year 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Operating revenues (thousands) 990,073 1,840,965 1,667,447 1,511,203 1,378,942 1262188 1,137,046 996,150 908,719 779,117 Operating expenses (thousands) 1,271,058 1,477,015 1,423,988 1,280,573 1,006,375 890,486 979,701 841,413 776,415 693,673 Passengers (thousands) 8,624 15,012 13,750 12,310 11,128 9,501 8,154 7,241 6,987 6,176 *Total system statistics for passengers, not Scheduled service statistics 1. Prepare a simple regression of Operating Expenses as a function of Passengers Prepare a plot of the regression results. Include in your XY scattergram a trendline, R, and regression formula. Be sure the regression formula is not in scientific notation. Be sure your regression line exactly intersects the Yaxis. 2. Prepare a simple regression of Operating revenues as a function of Passengers. Prepare a plot of the regression results. Include in your XY scattergram a trendline, R, and regression formula. Be sure the regression formula is not in scientific notation. Be sure your regression line exactly intersects the Yaxis. 3. Using the regression equations derived in #1 and #2, estimate the number of passengers to be carried for Allegiant to break even. Subtract the Operating expense equation from the Operating revenues equation, plugging in passengers carried until the result is $0. That will be your break-even point, on average, over the years 2011-2020. B D E G Allegiant Travel Company Year 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 Operating revenues (thousands) 990,073 1,840,965 1,667,447 1,511,203 1,378,942 1262188 1,137,046 996,150 908,719 779,117 Operating expenses (thousands) 1,271,058 1,477,015 1,423,988 1,280,573 1,006,375 890,486 979,701 841,413 776,415 693,673 Passengers (thousands) 8,624 15,012 13,750 12,310 11,128 9,501 8,154 7,241 6,987 6,176 *Total system statistics for passengers, not Scheduled service statistics

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