5. Kathy Tran, owner of Flower Paradise, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Tran wants to set the delivery fee based on the distance driven to deliver the flowers. Tran wants to separate the fixed and variable portions of her van operating costs so that she has a better idea how delivery distance affects these costs. She has the following data from the past seven months: 1(Click the icon to view the data.) Read the requirements Requirement 1. Determine the company's cost equation (use the output from the Excel regression). (Round the amounts to two decimal places.) y = X + Requirement 2. Determine the R-squared (use the output from the Excel regression). The R-squared is (1) What does Flower Paradise's R-squared indicate? Flower Paradise (4) feel confident using this cost The R-squared indicates that the cost equation explains (2) of the variability in the data. In other words, it (3) equation to predict total costs at other volumes within the same relevant range. Requirement 3. Predict van operating costs at a volume of 16,000 miles assuming the company would use the cost equation from the Excel regression regardless of its R-squared. Should the company rely on this cost estimate? Why or why not? (Round your answer to the nearest cent.) The operating costs at a volume of 16,000 miles is Should the company rely on this cost estimate? Why or why not? Since the R-squared is (5) the company (6) 1: Data Table Month Miles Driven January 15,900 Van Operating Costs $5,420 $5,460 18,000 February March 15,300 $5,100 April. May 16,300 17,000 15,700 $5,290 $5,520 June $5,150 July 15,000 $4,950 2: Requirements Use Microsoft Excel to run a regression analysis, then do the following: 1. Determine the company's cost equation (use the output from the Excel regression). 2. Determine the R-squared (use the output from the Excel regression). What does Flower Paradise's R-squared indicate? 3. Predict van operating costs at a volume of 16,000 miles assuming the company would use the cost equation from the Excel regression regardless of its R-squared. Should the company rely on this cost estimate? Why or why not? (1) 0.026481 (2) 16.9% (5) (4) O will not should OOOO 0.83329 O 0.694373 0.169285 O 0.633248 83.3% 63.3% 2.6% 69.4% (3) Oshould be used with caution. fits the data quite well. does not fit the data at all. between .50 and .80 over 80 less than .50 may or may not (6) OOO should use the cost equation with caution. O should not rely on this cost estimate. can rely on this cost estimate