Kallie Tran, owner of Flower Paradise, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Tran wants to set the delivery fee based on the distance driven to deliver the flowers. Tran 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 Paradise 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.) Read the requirements. Requirement 1. Determine the firm's cost equation (use the output from the Excel regression). (Enter amounts to two decimal places.) y =
Kallie Tran, owner of Flower Paradise, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Tran wants to set the delivery fee based on the distance driven to deliver the flowers. Tran 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 Paradise 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.) Read the requirements. Requirement 1. Determine the firm's cost equation (use the output from the Excel regression). (Enter amounts to two decimal places.) y =
Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
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Chapter3: Straight Lines And Linear Functions
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Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
Question
Transcribed Image Text:Kallie Tran, owner of Flower Paradise, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charging a flat delivery fee, Tran wants to
set the delivery fee based on the distance driven to deliver the flowers. Tran 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 Paradise 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.)
Read the requirements.
Requirement 1. Determine the firm's cost equation (use the output from the Excel regression). (Enter amounts to two decimal places.)
y =
X +
Transcribed Image Text:1
SUMMARY OUTPUT
Regression Statistics
3 Multiple R
0.86
4 R Square
0.75
5 Adjusted R Square
0.7
6 Standard Error
171.55
7 Observations
7
8 ANOVA
9.
df
SS
MS
F
Significance F
10 Regression
1
435,336.22
435,336.22
14.79
0.0120
11 Residual
147,149.49
29,429.90
12 Total
6.
582,485.71
13
Coefficients
Standard Error
t Stat
P-value
Lower 95%
Upper 95%
14 Intercept
709.81
1,150.73
0.62
0.56
-2,248.24
3,667.85
15 X Variable 1
0.29
0.07
3.85
0.01
0.09
0.48
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