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

Estimate the Annual Net Sales of a Starbucks when Rent = 2.5, Inventory = 430, Advertising =7.75,

Sales = 9.89 and Number of Competitors = 8.

See Attached Excel for Data.

Starbuck Sales data.xlsx

Question 5 options:

280.81

275.79

274.65

270.77