! 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. The following data were collected from last year's operations (revenues and costs in thousands of dollars). Store 101 Revenues Costs $4,100 $4,214 102 2,227 2,894 103 5,738 5,181 104 3,982 3,998 105 2,914 3,676 106 4,023 3,319 107 6,894 5,029 108 1,779 2,374 109 5,416 4,688 110 3,228 2,959 111 3,886 4,179 112 4,690 3,200 113 3,552 2,556 114 4,817 4,655 115 2,124 2,986 Simple regression results from the data of Davis Stores are as follows. Equation: Store costs = $1,604.40 + (Revenue x 53.6%) Statistical data Correlation coefficient R2 Required: 0.835 0.698 a. Estimate store costs for a store with revenue of $2.5 million. b. What percentage of the variation in store costs is explained by the independent variable?