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(last photo is from a different problem, my bad) Kallie Chen, owner of Rose Ready, operates a local chain of floral shops. Each shop has
(last photo is from a different problem, my bad)
Kallie Chen, owner of Rose Ready, operates a local chain of floral shops. Each shop has its own defivery van. Instead of charging a flat delivery fee, Chen wants to set the delwery. fee based on the distance driven to deliver the flowers. Chen wants to soparato the foxed and variable portions of her van operating costs so that she has n betier idea hew delivery distance affects these costs. Rose Ready does a regression aralysis on the next year's data using Excel. The output generated by Excel is as follows: (Click the ican to viow the regression analysis.) Read the requirements Requirement 1. Determine the firm's cost equation (use the oulput from the Excel regression). (finter amounts to two decimal places) Requirements 1. Determine the firm's cost equation (use the output from the Excel regression) 2. Determine the R-squared (use the output from the Excel regression). What does Rose Ready's R.squared indicate? 3. Prodict van operating costs at a volume of 15,800 miles assuming the company would use the cost equation from the Excel regression regarcless of its R-squared. Should the compary rely on this cost estimate? Why or why not? Regression analysis Use the high-lew methed to determine Captalileath's operating cost equation. (Round the variable cost to the nearest cent) y=x+ Step by Step Solution
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