Assume that Kent€™s Tulip Time does a regression analysis on the next year€™s data using Excel 2007. The output generated by Excel is as follows:

Requirement
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 15,500 kilometres.

Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations 0.85 0.72 0.66 205.01 ANOVA af MS Significance F 0.0158 Regression Residual Total 539222.81 539222.81 210148.62 42029.72 749371.43 12.83 5 6 Lower 95.0% Upper 95.0% 2704.12 4061.65 -2704.12 4061.65 0.51 Lower Upper 95% Coefficients 678.76 0.29 Standard Error 1316.00 0.08 t Stat 0.52 3.58 P-value 0.63 0.02 95% Intercept X Variable 1 0.08 0.51 0.08