Parts 1-5

Kallie Smith, owner of Rose Ready, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery foe, 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 the van'e operating costs to got a better idea of how delivery distance affects these costs. Here aro the dafa from the past soven months: Vlaw the data. Read the requirements. Requirement 1. Determine the company's cost equation (use the output from the Excel regression). (Round the amounts to twe decimal places.) y=x+ \begin{tabular}{|c|c|c|} \hline Month & Miles Driven & Van Operating Costs \\ \hline January ...... & 15,900 & $5,430 \\ \hline February ..... & 17,300 & $5,740 \\ \hline March & 14,600 & $4,940 \\ \hline April. & 16,300 & $5,270 \\ \hline May. & 17,200 & $5,820 \\ \hline June & 15,200 & $5,400 \\ \hline July & 14,300 & $4,990 \\ \hline \end{tabular} Requikements 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-squared (use the output from the Excel regression). What does Rose Ready's R-squared indicate? 3. Predict van operating costs at a volume of 15,500 miles assuming the company would use the cost equation from the Excel regression regardless of its R-squared. Should the company rely on this cost estimate? Why or why not