Refer to the Tulip Time data in E6-49B. Use Microsoft Excel to run a regression analysis, then do the following calculations.

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 Tulip Time€™s
R-square indicate?
3. Predict van operating costs at a volume of 14,500 kilometres.

Transcribed Image Text:

Month Kilometres Driven Van Operating Costs $5,400 5,350 4,980 5,280 5,580 5,010 4,590 January.. 15,500 May... 16,900 13,500