B D E F G 1 SUMMARY OUTPUT 2 Regression Statistics 3 Multiple R 4 R Square 5 Adjusted R Square 0.92 Requirements 0.84 0.81 6 Standard Error 148.38 7 Observations 7 1. Determine the firm'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 17,000 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? 8 ANOVA 9 df SS MS F Significance F 10 Regression 1 573,116.90 573,116.90 26.03 0.0038 11 Residual 5 110,083.10 22,016.62 Print Done 12 Total 6 683,200.00 13 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% 14 Intercept 1,263.34 806.85 1.57 0.18 -810.75 3,337.42 15 X Variable 1 0.26 0.05 5.10 0.00 0.13 0.39 Kara Rafferty, 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, Rafferty wants to set the delivery fee based on the distance driven to deliver the flowers. Rafferty 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. Rose Red does a regression analysis on the next year's data using Excel. The output generated by Excel is as follows: (Click the icon to view the regression analysis.) Read the requirements. Requirement 1. Determine the firm's cost equation (use the output from the Excel regression). (Enter amounts to two decimal places.) y = X + Requirement 2. Determine the R-squared (use the output from the Excel regression) The R-squared is What does Rose Red's R-squared indicate? The R-squared indicates that the cost equation explains of the variability in the data. In other words, it Rose Red V feel confident using this cost equation to predict total costs at other volumes within the same relevant range. Requirement 3. Predict van operating costs at a volume of 17,000 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 17,000 miles is Should the company rely on this cost estimate? Why or why not? Since the R-squared is V, the company