Answered step by step
Verified Expert Solution
Question
1 Approved Answer
! Required Information [The following information applies to the questions displayed below.] Davis Stores sells clothing in 15 stores located around the southwestern United
! Required Information [The following information applies to the questions displayed below.] 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 Costs Employees Revenues 101 $5,740 51 $2,724 102 3,565 49 5,096 103 5,600 51 5,183 104 4,327 35 2,240 105 3,689 38 5,519 106 2,777 26 2,846 107 2,821 35 3,349 108 2,318 37 6,340 109 2,124 24 3,646 110 3,090 29 2,833 111 2,329 28 4,732 112 5,973 56 6,716 113 5,257 53 4,407 114 3,220 53 5,192 115 5,411 50 3,606 d-1. Enter the regression coefficients. d-2. Estimate the cost of a store with 26 employees using the results from a simple regression of store cost on employees. Complete this question by entering your answers in the tabs below. Req D1 Req D2 Enter the regression coefficients. (Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign.) Intercept Employees
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started