Kelsey Gerbig, owner of Flowers 4 You, operates a local chain of fl oral shops. Each shop has its own delivery van. Instead of charging a fl at delivery fee, Gerbig wants to set the delivery fee based on the distance driven to deliver the flowers. Gerbig wants to separate the fixed and variable portions of her van operating costs so that she has a better idea how delivery distance affects these costs. She has the following data from the past seven months:
Month Miles Driven Van Operating Costs
January.............................................................. 16,500........................$5,260
February............................................................ 18,500........................$5,730
March................................................................ 16,100........................$4,960
April................................................................... 17,100........................$5,420
May.................................................................... 17,500........................$5,790
June................................................................... 15,800........................$5,300
July.................................................................... 15,500........................$5,040
Requirements
1. Prepare a scatter plot of Flowers 4 You's volume (miles driven) and van operating costs.
2. Does the data appear to contain any outliers? Explain.
3. How strong of a relationship is there between miles driven and van operating costs?