Susan Lewis, owner of a florist shop, is interested in predicting the cost of delivering floral arrangements. She collected monthly data on the number of deliveries and the total monthly delivery cost (depreciation on the van, wages of the driver, and fuel) for the past year.

Required:
1. Using a computer spreadsheet program such as Excel, run a regression on these data. Print out your results.
2. Using your results from Requirement 1, write the cost formula for delivery cost. (You may round the fixed cost to the nearest dollar and the variable rate to the nearest cent.)
3. What is R2 based on your results? Do you think that the number of direct labor hours is a good predictor of delivery cost?
4. Using the cost formula in Requirement 2, what would predicted delivery cost be for a month with 300deliveries?

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Month Number of Deliveries Delivery Cost (S) 1,200 1,800 1,100 1,050 1,190 1,980 1,800 1,700 1,100 1,275 1,400 2,200 January February March April May June 100 550 85 115 160 590 500 520 100 200 260 450 August September October November December