K Kallie Smith, 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, Smith wants to set the delivery fee based on the distance driven to deliver the flowers. Smith 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 Power does a regression analysis on the next year's data using Excel. The output generated by Excel is as follows: (Click the icon to view the regression analysis.) Read the requirements. Requirement 1. Determine the firm's cost equation (use the output from the Excel regression). (Enter amounts to two decimal places.) Regression analysis A 1 2 SUMMARY OUTPUT Regression Statistics 3 Multiple R 0.69 4 R Square 0.47 5 Adjusted R Square 0.37 6 Standard Error 218.13 7 Observations 7 8 ANOVA E F - wer Significance
K Kallie Smith, 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, Smith wants to set the delivery fee based on the distance driven to deliver the flowers. Smith 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 Power does a regression analysis on the next year's data using Excel. The output generated by Excel is as follows: (Click the icon to view the regression analysis.) Read the requirements. Requirement 1. Determine the firm's cost equation (use the output from the Excel regression). (Enter amounts to two decimal places.) Regression analysis A 1 2 SUMMARY OUTPUT Regression Statistics 3 Multiple R 0.69 4 R Square 0.47 5 Adjusted R Square 0.37 6 Standard Error 218.13 7 Observations 7 8 ANOVA E F - wer Significance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
am. 130.
Transcribed Image Text:K
Kallie Smith, 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, Smith wants to set the delivery fee based on the distance driven to deliver the
flowers. Smith 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 Power does a regression analysis on the next year's data using
Excel. The output generated by Excel is as follows:
(Click the icon to view the regression analysis.)
Read the requirements.
Requirement 1. Determine the firm's cost equation (use the output from the Excel regression). (Enter amounts to two
decimal places.)
Regression analysis
A
1
2
SUMMARY OUTPUT
Regression Statistics
3 Multiple R
0.69
4 R Square
0.47
5 Adjusted R Square
0.37
6 Standard Error
218.13
7 Observations
7
8 ANOVA
E
F
-
wer
Significance
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