Kaitlyn 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. She has the following data from the past seven months: 5 Click the icon to view the data.) Read the requirements Data Table x Requirement 1. Determine the company's cost equation (use the output from the Excel regression). (Round the amounts to two decimal places. y = $ X + $ Requirement 2. Determine the R-square (use the output from the Excel regression). Month Miles Driven Van Operating Costs $5,350 15.700 The R-square is January February March 16,500 $5,160 What does Rose Red's R-square indicate? 14.500 $4.960 16.000 $5,320 April May ther volumes within the same relev 16,300 $5,500 The R-square indicates that the cost equation explains of the variability in the data. In other words, it Rol 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 reg nearest cent.) June 15.100 $5,050 prwhy not? (Round your answer to July 14,000 $4,560 The operating costs at a volume of 17,000 miles is $ Print Done Should the company rely on this cost estimate? Why or why not? Since the r-square is the company Kaitlyn 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. She has the following data from the past seven months: 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.) y = $ X + $ Requirement 2. Determine the R-square (use the output from the Excel regression). The R-square is What does Rose Red's R-square indicate? The R-square indicates that the cost equation explains of the variability in the data. In other words, it Rose Red 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-square. 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-square is the company
