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Kerri Smith, owner of Flower Paradise, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat
Kerri Smith, 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. Smith wants to set the delivery fee based on the distance driven to deliver the flowers Smith 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: fig Use Microsoft Excel to run a regression analysis, then do the following Determine the firm's cost equation (use the output from the Excel regression). Determine the R-square (use the output from the Excel regression). What does Flower Paradise's R-square indicate? Predict van operating costs at a volume of 15,000 miles
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