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Davis Stores sells clothing in 15 stores located around the southwestern United States. The managers at Davis are considering expanding by opening new stores and

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Davis Stores sells clothing in 15 stores located around the southwestern United States. The managers at Davis are considering expanding by opening new stores and are interested in estimating costs in potential new locations. They believe that costs are driven in large part by store volume measured by revenue. During a discussion, one of the managers suggests that number of employees might be better at explaining cost than store revenues. As a result of that suggestion, managers collected the following information from last year's operations (revenues and costs in thousands of dollars) Store 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 Costs $2,323 1,926 2,941 2,728 2,497 5,206 2,924 3,168 2,775 5,917 2,452 3,128 3,282 4,880 5,157 Employees 40 25 28 37 49 50 44 40 28 57 32 28 37 42 54 Revenues $5,881 4,424 6,983 6,937 5,322 3,339 4,807 2,829 4,709 4,640 3,806 5,000 3,298 4,910 4,889 d-1. Enter the regression coefficients. d-2. Estimate the cost of a store with 42 employees using the results from a simple regression of store cost on employees Davis Stores sells clothing in 15 stores located around the southwestern United States. The managers at Davis are considering expanding by opening new stores and are interested in estimating costs in potential new locations. They believe that costs are driven in large part by store volume measured by revenue. During a discussion, one of the managers suggests that number of employees might be better at explaining cost than store revenues. As a result of that suggestion, managers collected the following Information from last year's operations (revenues and costs in thousands of dollars): Store 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 Costs $2,323 1,926 2,941 2,728 2,497 5,206 2,924 3,168 2,775 5,917 2,452 3,128 3,282 4,880 5,157 Employees 40 25 28 37 49 50 44 40 28 57 32 28 32 42 54 Revenues $5,881 4,424 6,983 6,937 5,322 3,339 4,807 2,829 4,709 4,640 3,806 5,005 3,298 4,910 4,889 d-1. Enter the regression coefficients. d-2. Estimate the cost of a store with 42 employees using the results from a simple regression of store cost on employees e-1. Enter the regression coefficients. e-2. Estimate the cost of a store with revenues of $2.80 million and 42 employees using the results of a multiple regression of store costs on store revenues and employees

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