Kathy Tran, owner of Flower Hour, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Tran wants to set the delivery fee based on the distance driven to deliver the flowers. Tran 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-squared (use the output from the Excel regression). The R-squared is What does Flower Hour's R-squared indicate? of the variability in the data. In other words, it Flower Hour feel confident using this cost equation to predict total costs at The R-squared indicates that the cost equation explains other volumes within the same relevant range. Requirement 3. Predict van operating costs at a volume of 16,500 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? (Round your answer to the nearest cent.) The operating costs at a volume of 16,500 miles is Should the company rely on this cost estimate? Why or why not? Since the R-squared is the company i X Data Table Month Miles Driven Van Operating Costs 15,500 $5,400 17,500 $5,350 14,400 $4,980 January February .. March April .... May June July .. 16,400 $5,280 $5,580 16,900 15,300 $5,010 13,500 $4,590 Print Done i Requirements Use Microsoft Excel to run a regression analysis, then do the following: 1. Determine the company'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 Hour's R-squared indicate? 3. Predict van operating costs at a volume of 16,500 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