Assume that Broadway Floral 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 Broadway Floral's R-square indicate?
3. Predict van operating costs at a volume of 16,000 miles assuming the company would use the cost equation from the Excel regression regardless of its R-square. Should the company rely on this cost estimate? Why or why not?

SUMMARY OUTPUT Regression Statistics 3 Multiple R R Square 5 Adjusted R Square 6 Standard Error Observations 8 ANOVA 0.69 0.47 0.37 218.13 Significance F 0.0869 df SS MS 214,895.40 47,580.92 9. 10 Regression Residual 12 Total 214,895.40 237,904.60 6. 4.52 11 452,800.00 13 Standard Error 1,426.35 Lower 95% -1,502.75 -0.04 Upper 95% 5,830.36 0.42 14 t Stat Coefficients 2,163.80 P-value 15 16 Intercept 17 X Variable 1 18 1.52 0.19 0.09 0.19 0.09 2.13