Assume that Flowers 4 You 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 Flowers 4 You's R-square indicate?
3. Predict van operating costs at a volume of 16,000 miles.

1 SUMMARY OUTPUT 4Multiple R 5 R Square 6 Adjusted R Square 7Standard Eror 8 Observations 0.81 0.65 0.58 202.91 10 ANOVA df MS 379,674.00 379,674.00 205,868.85 41,173.77 585,542.85 9.22 0.0289 13 Residual 14 Total 15 t Stat P-value 0.77 0.03 UpperLower Upper 95.0% 3,475.25 4,431.85 -3,475.25 4,431.85 16 Coefficients Standard Error 1,538.00 0.10 95% 95% 95.0% 478.30 0.31 18 XVariable 1 0.30 3.04 0.05 0.55 0.05 0.55