Assume that Alice€™s Flower Power does a regression analysis on the next year€™s data using Excel 2007. The output generated by Excel is as follows:

Requirements
1. Determine the firm€™s cost equation (use the output from the Excel regression).
2. Determine the R-square (use the output from the Excel regression). What does Flower Power€™s R-square indicate?
3. Predict van operating costs at a volume of 16,000 km.

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SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations 0.96 0.92 0.9D 112.91 ANOVA Significance F 0.0007 df MS 54.D8 Regression Residual Tota 689408.19 689408.19 63745.52 12749.10 753153.71 Coefficients 826.04 0.28 Standard Emor 629.77 0.04 t Stat 1.31 7.35 P-value 0.25 0.00 Lower 95% 792.83 Upper LowerUpper 95.0% 95% 95.0% Intercept X Variable 1 2444.91 792.83 2444.9 0.18 0.37 0.18 0.37