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

Is there a significant linear relationshipbetween these 5 variables and the Annual Net Sales of a Starbucks?

If so, what is/are the significant predictor(s) for determining the Annual Net Sales of a Starbucks?

See Attached Excel for Data.

Starbuck Sales data.xlsx9 KB

• A. Yes,
• Rent, p-value =0.012388536
• Advertising, p-value =0.003599968
• Sales per Month, p-value = 0.000876481
• B. No,
• Rent, p-value =0.012388536
• Advertising, p-value =0.003599968
• Sales per Month, p-value = 0.000876481
• C. No,
• Inventory, p-value =0.068486021>.05, No, Inventory is not a significant predictor for Annual Net Sales
• # Competitor Store, p-value =0.258240292 > .05, No, # Competitor Stores, is not a significant predictor for Annual Net Sales.
• D. Yes,
• Inventory, p-value =0.068486021>.05, No, Inventory is not a significant predictor for Annual Net Sales
• # Competitor Store, p-value =0.258240292 > .05, No, # Competitor Stores, is not a significant predictor for Annual Net Sales.

Annual Net Sales in Thousands Rent/$1000 Inventory/$1000 Advertising/$1000 Sales per month /$1000 # Competior Stores in Area

Paste BIUVv = = Merge & Center .00 -4.0 Formatting Table Styles ~ Clipboard Font Alignment Number Styles F28 X V fx 8 A B C D E F G 1 Annual Net Sales in Thousands Rent/$1000 Inventory/$1000 Advertising/$1000 Sales per month /$1000 # Competior Stores in Area 56 00 VOX UT A W N 231 3 303 8. 199999809 8. 199999809 12 156 2.200000048 267 6.900000095 4.099999905 13 10 0.5 156 3 4.300000191 15 499 5.5 667 13 16. 10000038 2 437 4.400000095 567 10.60000038 14. 10000038 5 487 4.800000191 571 11.80000019 12.69999981 4 303 3.099999905 512 8.1 10. 10000038 8 195 2.5 355 7.699999809 3 8 13 20 1.200000048 212 3.299999952 2.099999905 15 11 68 0.600000024 102 4.900000095 4.699999809 566 5.400000095 788 17.39999962 12.30000019 13 428 4. 199999809 577 10.5 14 14 464 4.699999809 535 11.30000019 15 15 15 0.600000024 163 2.5 2.5 14 16 64 1.200000048 167 4.699999809 3.299999952 17 98 1.600000024 151 4.599999905 2.700000048 18 398 4.300000191 342 5.5 16 19 161 2.599999905 196 7. 199999809 6.300000191 20 397 3.799999952 453 10.39999962 13.89999962 21 497 5.300000191 518 11.5 16.29999924 22 450 5.599999905 615 12.30000019 16 23 124 0.800000012 278 2.799999952 6.5 24 0.5 1. 100000024 142 3.099999905 1.600000024 25 347 3.599999905 461 9.6 11.30000019 26 341 3.5 382 9.800000191 11.5 27 507 5.099999905 588 28 12 15.69999981 399 8.6 517 7 12 OUIO NA O - VWAON 29 30 31 32 33 34 35 36 Data +