Question
You are the CEO of Big Grocery. Your company is planning on expanding into new markets. As a part of this endeavor you are expected
You are the CEO of Big Grocery. Your company is planning on expanding into new markets. As a part of this endeavor you are expected to make decisions on things such as store size, location and management. To help you make this decision you ask a subordinate (its good to be the CEO) to compile some data for you to help with making your decision. The data is outlined in the Part 1 document and is copied below. The key question that we want to address is how do you decide on the management choice for your new store? You have several managers which were introduced in Part 1. You need to decide who to promote to the position of management for the new store. Assume you are going to pick one of your current managers take over the new store. Recall that Alice runs locations 1, 5 and 6, Bill runs locations 2, 9 and 10, Chauncey runs locations 3, 11, 12 and Deter runs locations 4, 7 and 8. Use MLR to estimate the manager's impact on revenue after controlling for the other important variables for which you have data. Justify your estimate, and make a decision on who to promote in your document.
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