Davis Stores sells clothing in 15 stores located around the southwestern United States. The managers...
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Davis Stores sells clothing in 15 stores located around the southwestern United States. The managers at Davis are considering expanding by opening new stores and are interested in estimating costs in potential new locations. They believe that costs are driven in large part by store volume measured by revenue. During a discussion, one of the managers suggests that number of employees might be better at explaining cost than store revenues. As a result of that suggestion, managers collected the following information from last years operations (revenues and costs in thousands of dollars):
Store
Costs
Employees
Revenues
101
$2,323
40
$5,881
102
1,926
25
4,424
103
2,941
28
6,983
104
2,728
37
6,937
105
2,497
49
5,322
106
5,206
50
3,339
107
2,924
44
4,807
108
3,168
40
2,829
109
2,775
28
4,709
110
5,917
57
4,640
111
2,452
32
3,806
112
3,128
28
5,005
113
3,282
37
3,298
114
4,880
42
4,910
115
5,157
54
4,889
e-1. Enter the regression coefficients.
e-2. Estimate the cost of a store with revenues of $2.80 million and 42 employees using the results of a multiple regression of store costs on store revenues and employees.
Enter the regression coefficients. (Round "Intercept" and "Employees" to 1 decimal place and "Revenues" to 2 decimal places. Negative amounts should be indicated by a minus sign.)
Intercept
Revenues
Employees
Estimate the cost of a store with revenues of $2.80 million and 42 employees using the results of a multiple regression of store costs on store revenues and employees. (Round "Intercept" and "Employees" to 1 decimal place and "Revenues" to 2 decimal places in the intermediate calculations. Round your final answers to 1 decimal place.)
Store cost
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