E Homework: HW #4 - Chapter 6 Question 7, E6-30A (simil... Part 1 of 5 HW Score: 60%, 6 of 10 points O Points: 0 of 1 Save Kathy Jungemann, owner of Flower Power, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Jungemann wants to set the delivery fee based on the distance driven to deliver the flowers. Jungerann 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. Flower Power 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. . Regression analysis B D E F G Requirement 1. Determine the firm's cost equation (use the output from the Excel regression). (Enter amounts to two decimal places.) y= 1 SUMMARY OUTPUT 2 Regression Statistics 3 Multiple R 4 R Square 0.86 0.75 - 0.7 Requirements 5 Adjusted R Square 6 Standard Error 174.75 7 Observations 7 8 ANOVA df 9 SS 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 Flower Power's R-squared indicate? 3. Predict van operating costs at a volume of 15,000 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? MS Significance F F 0.01221 10 Regression 11 Residual 1 448,647.94 448,647.94 14.69 5 152.694.92 30,538.98 12 Total 6 601,342.86 Standard Coefficients Error P. value Lower 95% Upper 95% 13 Star Print Done 1,028.28 1.131.33 0.91 0.41 -1,879.90 3,936.46 14 Intercept X Variable 151 0.26 0.07 3.83 0.01 0.09 0.43 Print Done Help Me Solve This Video Get More Help OTTOM VIRRING