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Kaitlyn Jungemann. owner of Flower Hour, operates a local chain of oral shops. Each shop has its own delivery van. Instead of charging a at
Kaitlyn Jungemann. owner of Flower Hour, operates a local chain of oral shops. Each shop has its own delivery van. Instead of charging a at delivery fee, Jungemann wants to 5 based on the distance driven to deliver the owers. Jungemann wants to separate the xed and variable portions of her van operating costs so that she has a better idea how deliv affects these costs. Flower Hour 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 muirements. Requirement 1. Determine the rm's cost equation (use the output from the Excel regression). (Enter amounts to two decimal places.) y: x+ Requirements Determine the rm's cost equation (use the output from the Excel regression). Determine the R-squared (use the output from the Excel regression). What does Flower Hour's R-squared indicate? 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 Rsquared. Should the company rely on this cost estimate? Why or why not? -153
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