Homework: Chapter 6 Homework Save Score: 0 of 2 pts 6 of 7 (6 complete) HW Score: 80%, 8 of 10 pts E6-27A (similar to) Question Help O Kim Chen, 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, Chen wants to set the delivery fee based on the distance driven to deliver the flowers. Chen 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: 3(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.) Data Table y = $ x+$ Month Miles Driven Requirements January February March Van Operating Costs $5,490 $5,700 $4,910 $5,340 $5,820 $5,410 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-square (use the output from the Excel regression). What does Rose Red's R-square 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-square. Should the company rely on this cost estimate? Why or why not? 16,000 17,500 14,900 16,200 16,900 15,100 14,500 April ......... May .... June.. July... $4,920 Print Done Print Done Enter any number in the edit fields and then click Check