A B D E F G H 1 Cost Behavior 2 Regression Analysis 3 Melody Leigh, owner of Broadway Floral, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Leigh wants to set the delivery fee based on the distance driven to deliver the flowers. Leigh wants to separate the fixed and variable portions of her van operating costs so that she has a better idea of how delivery distance affects these costs. She has the following data from the past seven months: 4 5 000 10 Van Operating 6 Month Miles Driven Costs 7 January 15,500 $ 5,390 February 17,400 $ 5,280 9 March 15,400 $ 4,960 April 16,300 $ 5,340 11 May 16,500 $ 5,450 June 15,200 $ 5,230 July 14,400 $ 4,680 14 15 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you 16 copy/paste from the Instructions tab you will be marked wrong. 17 12 13 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong. a. Requirements 1 Run a regression analysis using data for January through July. Determine the company's cost equation (use the output from the regression analysis you performed using Excel). Rename the regression output tab "REGRESSION" 2 Determine the R-square (use the output from the Excel regression). 3 Predict van operating costs at a volume of 16,500 miles assuming the company would use the cost equation from the Excel regression regardless of its R-square. Reference values calculated in previous requirements as needed. a. Saving & Submitting Solution 1 Save file to desktop. a. Create folder on desktop, and label COMPLETED EXCEL PROJECTS 2 Upload and submit your file to be graded. a. Navigate back to the activity window - screen where you downloaded the initial spreadsheet b. Click Choose button under step 3; locate the file you just saved and click Open Click Upload button under step 3 d. Click Submit button under step 4 C. Viewing Results 1 Click on Results tab in MyAccountingLab 2 Click on the Assignment you were working on 3 Click on Project link; this will bring up your Score Card 4 Within Score Card window, click on Live Comments Report (lower right) to download spreadsheet with feedback A B C D E F G H L 1 X + 1. Run a regression analysis using data for January through July. Determine the company's cost equation (use the output from the regression analysis you performed using Excel). (Always use cell references and formulas where appropriate to receive full credit. If you 2 copy/paste from the Instruction tab you will be marked wrong.) 3 4 y = 5 6 2. Determine the R-square (use the output from the Excel regression). (Always use cell references and formulas where appropriate to receive full credit. If you 7 copy/paste from the Instruction tab you will be marked wrong.) 8 9 R square = 10 3. Predict van operating costs at a volume of 16,500 miles assuming the company would use 11 the cost equation from the Excel regression regardless of its R-square. (Always use cell references and formulas where appropriate to receive full credit. If you 12 copy/paste from the Instruction tab you will be marked wrong.) 13 14 The operating costs at a volume of 16,500 miles is 15 16 17 18 10
