Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Melody Leigh, owner of Broadway Floral, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat
Melody Leigh, owner of Broadway Floral, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Leigh wants to set the delivery fee based on the distance driven to deliver the flowers. Leigh wants to separate the fixed and variable portions of her van operating costs so that she has a better idea of how delivery distance affects these costs. She has the following data from the past seven months: Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to recelve full credit. If you 1. Run a regression analysis using data for January through July. Determine the company's 1 cost equation (use the output from the regression analysis you performed using Excel). (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab or if you type the numbers in, you will be marked 2 wrong.) y= x+ 2. Determine the R-square (use the output from the Excel regression). (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab or if you type the numbers in, you will be marked 7 wrong.) R square = 3. Predict van operating costs at a volume of 16,500 miles assuming the company would use 11 the cost equation from the Excel regression regardless of its R-square. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the instructions tab or if you type the numbers in, you will be marked 12 wrong.) The operating costs at a volume of 16,500 miles is
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started