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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

Find the estimated regression equation which can be used to estimate Annual Net Sales when using these 5 variables are predictor variables.

See Attached Excel for Data.

Starbuck Sales data.xlsx

Question 3 options:

Annual Net Sales = 44.4256 + 5.5406(Rent) + 0.0979(Inventory) + 3.7165(Advertising) + 2.9543(Sales) - 2.5614(Competitor)

Annual Net Sales = -49.0449 + 0.9911(Rent) + 0.9823(Inventory) + 0.9782(Advertising) + 27.6181(Sales) - 2.9766(Competitor)

Annual Net Sales = -49.0449 + 15.1571(Rent) + 0.1744(Inventory) + 12.1779(Advertising) + 14.2972(Sales) - 2.9766(Competitor)

Annual Net Sales = -1.1039+ 2.736(Rent) + 1.9204(Inventory) + 3.2767(Advertising) + 4.8384(Sales) - 1.1620(Competitor)

image text in transcribed
Annual Net Sales in Thousand: Rent/$1000 Inventory/$1000 Advertising/$1000 Sales per month /$100(# Competior Stores in Area 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 195 2.5 355 7.699999809 8.8 20 1.200000048 212 3.299999952 2.099999905 68 0.600000024 102 4.900000095 4.699999809 566 5.400000095 788 17.39999962 12.30000019 428 4. 199999809 577 10.5 14 464 4.699999809 535 11.30000019 15 3 15 0.600000024 163 2.5 2.5 14 64 1.200000048 167 4.699999809 3.299999952 98 1.600000024 151 4.599999905 2.700000048 398 4.300000191 342 5.5 16 161 2.599999905 196 7.199999809 6.300000191 397 3.799999952 453 10.39999962 13.89999962 7 497 5.300000191 518 11.5 16.29999924 450 5.599999905 615 12.30000019 16 124 0.800000012 278 2.799999952 6.5 0.5 1. 100000024 142 3.099999905 1.600000024 347 3.599999905 461 9.6 11.30000019 341 3.5 382 9.800000191 11.5 507 5.099999905 588 12 15.69999981 399 8.6 517 7 12

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