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.