Question
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
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 years operations (revenues and costs in thousands of dollars):
Store | Costs | Employees | Revenues |
101 | $2,323 | 40 | $5,881 |
102 | 1,926 | 25 | 4,424 |
103 | 2,941 | 28 | 6,983 |
104 | 2,728 | 37 | 6,937 |
105 | 2,497 | 49 | 5,322 |
106 | 5,206 | 50 | 3,339 |
107 | 2,924 | 44 | 4,807 |
108 | 3,168 | 40 | 2,829 |
109 | 2,775 | 28 | 4,709 |
110 | 5,917 | 57 | 4,640 |
111 | 2,452 | 32 | 3,806 |
112 | 3,128 | 28 | 5,005 |
113 | 3,282 | 37 | 3,298 |
114 | 4,880 | 42 | 4,910 |
115 | 5,157 | 54 | 4,889 |
c. Prepare a scattergraph between store cost and employees.
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