Question
You are thinking about opening up a Starbucks in your area but what to know if it is a good investment. How much money do
You are thinking about opening up a Starbucks in your area but what to know if it is a good investment. How much money do Starbucks actually make in a year? You collect data to, to help estimate Annual Net Sales, in thousands, of dollars to know how much money you will be making.
You collect data on 27 stores to help make your decision.
x1 = Rent in Thousand per month
x2 = Amount spent on Inventory in Thousand per month
x3 = Amount spent on Advertising in Thousand per month
x4 = Sales in Thousand per month
x5= How many Competitors stores are in the Area
Interpret the slope(s) of the significant predictors for Annual Net Sales (if there are any).
See Attached Excel for Data.
When you hold Inventory, Advertising, Sales per month and #of Competitor constant, as Rent increases by $1000, your Annual Net Sales will increase by $2.74 in $1000. When you hold Rent, Inventory, Sales per Month and #of Competitor constant, as Advertising increases by $1000, your Annual Net Sales will increase by $3.28 in $1000. When you hold Rent , Inventory, Advertising, and # of Competitor constant, as Sales per Month increases by $1000, your Annual Net Sales will increase by $4.84 in $1000. | |
When you hold Inventory, Advertising, Sales per month and #of Competitor constant, as Rent increases by $1000, your Annual Net Sales will increase by $5.40 in $1000. When you hold Rent, Inventory, Sales per Month and #of Competitor constant, as Advertising increases by $1000, your Annual Net Sales will increase by $3.72 in $1000. When you hold Rent , Inventory, Advertising, and # of Competitor constant, as Sales per Month increases by $1000, your Annual Net Sales will increase by $2.95 in $1000. | |
When you hold Inventory, Advertising, Sales per month and #of Competitor constant, as Rent increases by $1000, your Annual Net Sales will increase by $15.16 in $1000. When you hold Rent, Inventory, Sales per Month and #of Competitor constant, as Advertising increases by $1000, your Annual Net Sales will increase by $12.18 in $1000. When you hold Rent , Inventory, Advertising, and # of Competitor constant, as Sales per Month increases by $1000, your Annual Net Sales will increase by $14.30 in $1000. | |
There are no significant predictors. |
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