Kallie Chen, owner of Flower Direct, 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. Flower Direct 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. Requirement 1. Determine the firm's cost equation (use the output from the Excel regression). (Enter amounts to two decimal places.) y= x + Requirements 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 Direct's R-squared indicate? 3. Predict van operating costs at a volume of 14,500 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? Print Done - Regression analysis 123 A B SUMMARY OUTPUT Regression Statistics C D E F G 3 Multiple R 0.83 4 R Square 0.69 5 Adjusted R Square 0.63 6 Standard Error 127.8 7 Observations 7 - X 8 ANOVA 9 10 Regression df SS MS F Significance F 1 185,536.45 185,536.45 11.36 0.0199 11 Residual 5 81,663.55 16,332.71 12 Total 6 267,200.00 13 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% 14 Intercept 2,532.42 813.67 3.11 0.03 440.81 4,624.02 15 X Variable 1 0.17 0.05 3.37 0.02 0.04 0.30 Print Done