This lest: 10 pts possible Karen Coughlin, owner of Flowers 4 You, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Coughlin wants to set the delivery fee based on the distance driven to deliver the flowers. Coughlin 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. Flowers 4 You does a regression analysis on the next year's data using Excel. The output generated by Excel is as follows: B (Click the icon to view the regression analysis.) Read the requirements Regression analysis Requirement 1. Determine the firm's cost equation (use the output from the Excel regression). (Ente y = X+ D E F G SUMMARY OUTPUT Requirement 2. Determine the R-squared (use the output from the Excel regression) WN - The R-squared is 0.86 What does Flowers 4 You's R-squared indicate? 0.75 2 Regression Statistics 3 Multiple R 4. R Square 5 Adjusted R Square 6 Standard Error 7 Observations 0.7 The R-squared indicates that the cost equation explains volumes within the same relevant range. of the variability in the data. In other 5 at other 174.75 7 Requirement 3. Predict van operating costs at a volume of 15,000 miles assuming the company wo not? (Round your answer to the nearest cent) or why 8 ANOVA 9 SS MS F The operating costs at a volume of 15,000 miles is Significance 00122 10 Regression 1 448,647.94 448 647 94 1469 Should the company rely on this cost estimate? Why or why not? 11 Residual 5 152.694 92 30,538.98 Since the R-squared is the company 12 Total 6 601.342.86 13 Coefficients Standard Error Stat Race Uboe955 1,028 28 1.131 33 0.91 Lower 95% - 1 879 90 009 14 Intercept 15 X Variable 1 3.936 46 0.26 383 Enter any number in the edit fields and then continue to the next question 0.43 007 0.01 . Karen Coughlin, owner of Flowers 4 You, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Coughlin wants to set the delivery fee based on the distance driven to deliver the flowers. Coughlin 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. Flowers 4 You 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.) Read the requirements Requirement 1. Determine the firm's cost equation (use the output from the Excel regression). (Enter amounts to two decimal places.) y = X + Requirement 2. Determine the R-squared (use the output from the Excel regression). The R-squared is What does Flowers 4 You's R-squared indicate? Flowers 4 You feel confident using this cost equation to predict total costs at other of the variability in the data. In other words, it The R-squared indicates that the cost equation explains volumes within the same relevant range. Requirement 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-squared Should the company rely on this cost estimate? Why or why not? (Round 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? the company Since the R-squared is Enter any number in the edit fields and then continue to the next