Question

to deliver the flowers Buite angol. The pred Kali Batte, owner of Tulip Time, operates a local chain of floralshops. Each shop has its own delivery van. Instead of charging a fal ellery for Bare wait to set the delivery fee based on the danced wants to separate the food and variable portions of her an operating costs so that she has a better idea how delivery distance affects theseos Tulip Time does regression analysis on the rest year's d by Excel is as follows: Click the icon to view the regression analysis) Requirements 1. Determine the firm's cost equation use the old from the Excel regression) 2. Determine the square the output from the Excel regression) What does Times-sure indicare? 3. Predict van operating costs a volume of 16.500 miles assuming the company would use the cost equation from the Excel regression regardless of thout the company rely on this why or why no Requirement 1. Determine the firm's cost in the out from the Eol regression. Entramounts to two decimal places) y- $ 0.20 028 29 Requirement 2. Determine the R are use the output from the Excel regression The square is OT13077 the besed with c on To The may or may not feel content What does Tulip Time r nice? The quare indicates that the couleuion plans of the variability in the data in volumes within the servantage Requirements. Predic t ing cost volume of 16.500 assuming the company w (Round your a wer to the nearest cont) The song cool at volume of 6.500 l e on from Icelregressions that they want ? www

Answer 1

Cost Equation:

Y=a+bX

Y=Cost

X=Miles Driven

a=Intercept=1028.28

b=X variable 1=0.26

Y=1028.28+0.26X

R square indicates goodness of fit

Percentage of readings which can be explained by the regression equations.

In this case R square=0.75

Operating cost for a volume of 16500 miles:

X=16500

Y=1028.28+0.26*16500

Y=5328.18

Operating cost for a volume of 16500 miles=$5,328.18