Kate Jungemann, owner of Flowers 4 You, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Jungemann wants to set the delivery fee based on the distance driven to deliver the flowers. Jungemann 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 Flowers 4 You's R-square indicate? The R-square indicates that the cost equation explains of the variability in the data. In other words, it Flowers 4 You 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 Kate Jungemann, owner of Flowers 4 You, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Jungemann wants to set the delivery fee based on the distance driven to deliver the flowers. Jungemann 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: E: (Click the icon to view the data.) Read the requirements. Requirement 1. Determine the company's cost equation (use the output from the Excel regr - X Data Table y = 5 X + $ Requirement 2. Determine the R-square (use the output from the Excel regression). Month Miles Driven The R-square is January February What does Flowers 4 You's R-square indicate? 15,700 16,500 14.500 Van Operating Costs $5,350 $5,160 $4,960 $5,320 March onfident using this cost equation to predict total costs at other volumes within the April 16,000 The R-square indicates that the cost equation explains of the variability in the data. relevant range Requirement 3. Predict van operating costs at a volume of 17,000 miles assuming the com nearest cent.) May 16,300 $5,500 hould the company rely on this cost estimate? Why or why not? (Round your ansv June 15.100 $5,050 July 14,000 $4,560 The operating costs at a volume of 17,000 miles is $ Should the company rely on this cost estimate? Why or why not? Print Done Since the r-square is the company Kate Jungemann, owner of Flowers 4 You, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Jungemann wants to set the delivery fee based on the distance driven to deliver the flowers. Jungemann 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 Flowers 4 You's R-square indicate? The R-square indicates that the cost equation explains of the variability in the data. In other words, it Flowers 4 You 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 Kate Jungemann, owner of Flowers 4 You, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Jungemann wants to set the delivery fee based on the distance driven to deliver the flowers. Jungemann 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: E: (Click the icon to view the data.) Read the requirements. Requirement 1. Determine the company's cost equation (use the output from the Excel regr - X Data Table y = 5 X + $ Requirement 2. Determine the R-square (use the output from the Excel regression). Month Miles Driven The R-square is January February What does Flowers 4 You's R-square indicate? 15,700 16,500 14.500 Van Operating Costs $5,350 $5,160 $4,960 $5,320 March onfident using this cost equation to predict total costs at other volumes within the April 16,000 The R-square indicates that the cost equation explains of the variability in the data. relevant range Requirement 3. Predict van operating costs at a volume of 17,000 miles assuming the com nearest cent.) May 16,300 $5,500 hould the company rely on this cost estimate? Why or why not? (Round your ansv June 15.100 $5,050 July 14,000 $4,560 The operating costs at a volume of 17,000 miles is $ Should the company rely on this cost estimate? Why or why not? Print Done Since the r-square is the company
