SUMMARY OUTPUT
Regression Statistics
Multiple R		0.85
R Square		0.72
Adjusted R Square		0.66
Standard Error		207.23
Observations		7

ANOVA
	df	SS	MS	F	Significance F
Regression	1	545,878.49	545,878.49	12.71	0.0161
Residual	5	214,721.51	42,944.30
Total	6	760,600.00

		Standard			Lower	Upper
	Coefficients	Error	t Stat	P-value	95%	95%
Intercept	947.20	1,217.79	0.78	0.47	-2,183.23	4,077.64
X Variable 1	0.27	0.08	3.57	0.02	0.08	0.46

Kaitlyn Reynolds owner of Flower Mode operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Reynolds wants to set the delivery fee based on the distance driven to deliver the flowers. Reynolds 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. Flower Mode 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 Flower ModeFlower Mode's R-square indicate?
3.	Predict van operating costs at a volume of 17,000 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?

Kaitlyn Reynolds, owner of Flower Mode, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Reynolds wants to set the delivery fee based on the distance driven to deliver the flowers Reynolds 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. Flower Mode does a regression analysis on the next year's data using Excel. The output generated by Excel is as follows: E: (Click the icon to view the regression analysis.) 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 Flower Mode's R-square indicate? 3. Predict van operating costs at a volume of 17,000 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? Requirement 1. Determine the firm's cost equation (use the output from the Excel regression). (Enter amounts to two decimal places.) y = $ L x + $