Assume that Flower Power does a regression analysis on the next year€™s data using Excel. The output generated by Excel is as follows:

Requirements
1. Determine the firm€™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 Power€™s R- square indicate?
3. Predict van operating costs at a volume of 15,500miles.

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SUMMARY OUTPUT Regressi on Stotistics 3 Multiple 4 RSquare 5 Adjusted R Square 6 Standard Error 7 Observations 8 : ANOVA 0.60 0.36 0.24 MS 10 Regression 11 Residual 12 Total 13 14 15 166,411.05 166,411.05 2.85 0.1523 5 292160.3858,432.08 Standard Errơ 1752.55 Lower 95% Upper 95% Coefficients t Stot 16 Intercept 2250.74 17 X Variable 1 18 1.28 1.69 0.26-2,254.33 0.15 0,19 0.11 0.10 0.47