American Military University

You are thinking about opening up a Starbucks in your area but what to know if it is a good investment. How much money do Starbucks actually make in a year? You collect data to, to help estimate Annual Net Sales, in thousands, of dollars to know how much money you will be making. You collect data on 27 stores to help make your decision. x1 = Rent in Thousand per month x2 = Amount spent on Inventory in Thousand per month x3 = Amount spent on Advertising in Thousand per month x4 - Sales in Thousand per month x5= How many Competitors stores are in the Area Approximately what percentage of the variation in Annual Net Sales is accounted for by these 5 variables in this model? See Attached Excel for Data. Starbuck Sales data.xlsx )98.24% of variation in the Annual Net Sales is accounted for by Rent, Inventory, Advertising, Sales per Month and # of Competitor store in this model. )99.25% of variation in the Annual Net Sales is accounted for by Rent, Inventory. Advertising, Sales per Month and # of Competitor store in this model