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All requirements please!! Kim Battle, owner of Rose Red, operates a local chain of floral shops. Each shop has its own delivery van. Instead of
All requirements please!!
Kim Battle, owner of Rose Red, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Battle wants to set the delivery fee based on the distance driven to deliver the flowers. Battle 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: E: (Click the icon to view the data.) Read the fequirements. 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 Rose Red's R-squared indicate? 3. Predict van operating costs at a volume of 15,500 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? Month Miles Driven Van Operating Costs January. 16,000 $5,490 17,500 $5,700 14,900 February March .... April May ... $4,910 $5,340 16,200 16,900 $5,820 June 15,100 $5,410 July ... 14,500 $4,920 Requirement 1. Determine the company's cost equation (use the output from the Excel regression). (Round the amounts to two decimal places.) y = X +Step by Step Solution
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