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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

Approximately what percentage of the variation in Annual Net Sales is accounted for by these 5 variables in this model?

See Attached Excel for Data.

Annual Net Sales in Thousands Rent/$1000 Inventory/$1000 Advertising/$1000 Sales per month /$1000 # Competior Stores in Area
231 3 303 8.199999809 8.199999809 12
156 2.20000005 267 6.900000095 4.099999905 13
10 0.5 156 3 4.300000191 15
499 5.5 667 13 16.10000038 2
437 4.4000001 567 10.60000038 14.10000038 5
487 4.80000019 571 11.80000019 12.69999981 4
303 3.09999991 512 8.1 10.10000038 8
195 2.5 355 7.699999809 8.8 13
20 1.20000005 212 3.299999952 2.099999905 15
68 0.60000002 102 4.900000095 4.699999809 8
566 5.4000001 788 17.39999962 12.30000019 5
428 4.19999981 577 10.5 14 7
464 4.69999981 535 11.30000019 15 3
15 0.60000002 163 2.5 2.5 14
64 1.20000005 167 4.699999809 3.299999952 12
98 1.60000002 151 4.599999905 2.700000048 10
398 4.30000019 342 5.5 16 4
161 2.59999991 196 7.199999809 6.300000191 13
397 3.79999995 453 10.39999962 13.89999962 7
497 5.30000019 518 11.5 16.29999924 1
450 5.59999991 615 12.30000019 16 0
124 0.80000001 278 2.799999952 6.5 14
0.5 1.10000002 142 3.099999905 1.600000024 12
347 3.59999991 461 9.6 11.30000019 6
341 3.5 382 9.800000191 11.5 5
507 5.09999991 588 12 15.69999981 0
399 8.6 517 7 12 8

99.11% of variation in the Annual Net Sales is accounted for by Rent, Inventory, Advertising, Sales per Month and # of Competitor store in this model.

27.62% of variation in the Annual Net Sales is accounted for by Rent, Inventory, Advertising, Sales per Month and # of Competitor store in this model.
98.24% of variation in the Annual Net Sales is accounted for by Rent, Inventory, Advertising, Sales per Month and # of Competitor store in this model.
99.25% of variation in the Annual Net Sales is accounted for by Rent, Inventory, Advertising, Sales per Month and # of Competitor store in this model.

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