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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

Is there a significant linear relationship between 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.

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 2.200000048 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 8.8 13
20 1.200000048 212 3.299999952 2.099999905 15
68 0.600000024 102 4.900000095 4.699999809 8
566 5.400000095 788 17.39999962 12.30000019 5
428 4.199999809 577 10.5 14 7
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 12
98 1.600000024 151 4.599999905 2.700000048 10
398 4.300000191 342 5.5 16 4
161 2.599999905 196 7.199999809 6.300000191 13
397 3.799999952 453 10.39999962 13.89999962 7
497 5.300000191 518 11.5 16.29999924 1
450 5.599999905 615 12.30000019 16 0
124 0.800000012 278 2.799999952 6.5 14
0.5 1.100000024 142 3.099999905 1.600000024 12
347 3.599999905 461 9.6 11.30000019 6
341 3.5 382 9.800000191 11.5 5
507 5.099999905 588 12 15.69999981 0
399 8.6 517 7 12 8

Question 20 options:

a

Yes,

Rent, p-value = 0.012388536 < .05, Yes, Rent is a significant predictor for Annual Net Sales

Advertising, p-value = 0.003599968 < .05, Yes, Advertising is a significant predictor for Annual Net Sales

Sales per Month, p-value = 0.0000876481 < .05, Yes, Sales per Month, is a significant predictor for Annual Net Sales

b

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.

c

No,

Rent, p-value = 0.012388536 < .05, Yes, Rent is a significant predictor for Annual Net Sales

Advertising, p-value = 0.003599968 < .05, Yes, Advertising is a significant predictor for Annual Net Sales

Sales per Month, p-value = 0.000876481 < .05, Yes, Sales per Month, is a significant predictor for Annual Net Sales

d

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.

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