Kathy Coughlin, owner of Flower Paradise, operates a local chain of floral shops Each shop has its own delivery van. Instead of charging a flat delivery fee, Coughlin wants to set the delivery fee based on the distance driven to deliver the flowers Coughlin 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 Paradise 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.) Requirements 1. Determine the firm's cost equation (use the output from the Excel regression) 2. Determine the R square (use the output from the Excel regression). What does Flower Paradise's R-square indicate 3. Predict van operating costs at a volume of 16,000 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? Requirement 1. Determine the firm's cost equation (use the output from the Excel regression) (Enter amounts to two decimal places) y = $ X $ 0 Regression analysis JUNIYIRINT VOTU Regression Statistics Multiple R 0.86 R Square 0.75 Adjusted R Square 0.70 Standard Error 174.75 Observations ANOVA SS Significance F 0 .0122 MS 448,647.94 30,538.98 Regression Residual 14.69 448,647.94 152,694.92 601,342.86 Total Upper 95% Standard Error 1,131.33 0.07 Coefficients 1028 28 0.26 Intercept X Variable 1 tStat 0.91 3.83 Lower 95% -1,879.90 0.09 P-value 0.41 0.01 3,936.46 0.43