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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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