Kristen Chen, owner of Flower Power, operates a local chain of floral shops Each

Question

Kristen Chen, owner of Flower Power, operates a local chain of floral shops Each shop has its own delivery van. Instead of charging a flat delivery fee, Chen wants to set the delivery fee based on the distance driven to deliver the flowers. Chen 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 Kristen's Flower Power does a regression analysis on the next year's data using Excel. The output generated by Excel is as follows: Determine the firm's cost equation (use the output from the Excel regression). Determine the R-square (use the output from the Excel regression). What does Flower Power's R-square indicate Predict van operating costs at a volume of 15,500 miles Determine the firm's cost equation (use the output from the Excel regression).

Explanation / Answer

1.The firm’s cost equation is:

Y=1028.28+0.26X

2.From the excel output the coefficient of determination or r squared is 0.75.

3.For 15,500 miles, Y=1028.28+0.26*15500

=$5058.28

Related Questions

Navigate

• Browse (All)
• Browse K
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.