Kristen Coughlin, owner of Flower Hour operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a fat delivery fee, Coughlin wants to set the delivery fee based on the distance driven to deliver the flowers. Coughin wants to separate the food and variable portions of her van operating costs so that she has a better idea how delivery distance affects these costs. Flower Hour 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 Hour's R-square indicate? 3. Predict van operating costs at a volume of 15,000 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.) Requirement 2. Determine the R-square (use the output from the Excel regression) 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 Excelrogression) What does Flower Hour's R-square indicate? 3. Predict van operating costs at a volume of 15,000 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 2. Determine the R-square use the output from the Excel regression). The R-square is What does Flower Hour's R-square indicate? The R-square indicates that the cost equation explains of the variability in the data. In other words, Flower Hour fool confident using this cost equation to HOS Rurator 3. Predict van operating costs at a volume of 15.000 miles assuming the company would use the cost equation from the Excelrogression regardless of its R-square. Should the company rely on this cost estimate? Why or why not? cost ostawy or why not found your answer to the nearest cent) The operating costs at a volume of 15,000 miles is $ Should the company rely on this cost estimate? Why or why not? Since the squares the company SUMMARY OUTPUT Regression Statistics Multiple R 0.86 R Square 0.75 Adjusted R Square 0.70 Standard Error 174.75 Observations tid ANOVA MS F Significance df SS 14 69 00122 448 647 94 Regression 1 448 647 94 Print Done ANOVA df SS MS F Significance F Regression 1 448,647.94 14.69 0.0122 Residual 5 448,647.94 152,694.92 601,342.86 30,538.98 6 Total Lower Standard Error Coefficients Stat P-value 95% Upper 95% 3,936.46 0.43 tid 0.91 0.41 1028.28 Intercept X Variable 1 1,131.33 0.07 -1,879.90 0.09 3.83 0.01 0.26
