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Kale Meyer, owner of Rose Rec, operates a local chain of oral shops. Each shop has its own delivery van. Instead of charging a flat
Kale Meyer, owner of Rose Rec, operates a local chain of oral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee. Meyer wants to set the delivery fee based on the distance driven to cover the flowers. Meyer wants to separate the fixed and variabile portions of her van operating costs so that she has a bcller idea how delivery distance allocls these costs. She has the following cala rurn the past swen onths 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.) 0.29 y 745 Data Table 61 Requirements - X Month January ... February .... 1. March Use Microsoft Excel to run a regression analysis, then do the following: Determine the company's cost equation (use the output from the Fxcel Teglession) 2. Determine the Rsquared (use the output from the Excel regression). What does Rose Red's R squared indicate? 3. Predict van operating costs at a volume of 15,500 miles assuming the company wou 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? Miles Driven Van Operating costs 15,900 35.430 17,300 $5.740) 14,600 34.940 16,300 $5.270 17,200 $5.520 15,200 $5,400 14,300 $4.990 April May Junc... July ........ Print Done Print Done
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