Refer to the Fourth Street Floral data in E6-46B. 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 Fourth Street Floral's R-square indicate?
3. Predict van operating costs at a volume of 15,500 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?

Month Miles Driven Van Operating Costs 15,800 17,300 14,600 $5,460 January. $5,680 $4,940 February.. March... April. May. $5,310 16,000 17,100 15,400 14,100 $5,830 $5,420 June $4,880 July..