Reference no: EM132662875

Susan Lewis, the owner of a flower shop, is interested in predicting the cost of delivering floral arrangements. She collected monthly data on the number of deliveries and the total monthly delivery cost (depreciation on the van, wages of the driver, and fuel) for the past year.

Month                 Number of Deliveries          Delivery Cost ($)

January                  100                                  1,200
February                 550                                  1,800
March                      85                                   1,100
April                        115                                      1,050
May                         160                                     1,190
June                         590                                        1,980
July                         500                                           1,800
August                    520                                         1,700
September               100                                           1,100

October                   200                                           1,275

November                    260                                        1,400

December                   450                                         2,200

Required:

Problem 1. Using a computer spreadsheet program such as Excel, run a regression on these data. Enter the amount of the intercept (rounded to the nearest whole dollar) and the amount of the X Variable 1 (rounded to the nearest cent).
Intercept: $
X Variable 1: $

Problem 2. Using the above results, enter the cost formula for delivery cost. (Note: Round the fixed cost to the nearest dollar and the variable rate to the nearest cent.)
Delivery cost = $ + ( $ ×  )

Problem 3. What is R2 based on your results? State the answer as a percent to one decimal place.
%
Do you think that the number of deliveries is a good predictor of delivery cost