Month Miles Driven Van Operating Costs January ....... 16,000 $5,490 $5,700 February......... 17,500 : March.............. 14,900 $4,910 : April .................. : 16,200 $5,340 May M ay .................. 16,900 15,100 June.................. $5,820 $5,410 $4,920 JU IV. . . . . . . . . . . . 14,500 . . . . . . . Kallie Battle, owner of Flower Direct, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Battle wants to set the delivery fee based on the distance driven to deliver the flowers. Battle wants to separate the fixed and variable portions of her van operating costs so that she has a better idea how delivery distance affects these costs. She has the following data from the past seven months: (Click the icon to view the data.) Read the requirements. Requirement 1. Determine the company's cost equation (use the output from the Excel regression). (Round the amounts to two decimal places.) y=$ Ox+$D A 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-square (use the output from the Excel regression). What does Flower Direct's R-square indicate? 3. Predict van operating costs at a volume of 16,000 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? Print Done