Davis Stores sells clothing in 15 stores located around the southwestern United States. The managers at...

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Finance

Davis Stores sells clothing in 15 stores located around thesouthwestern United States. The managers at Davis are consideringexpanding by opening new stores and are interested in estimatingcosts in potential new locations. They believe that costs aredriven in large part by store volume measured by revenue. During adiscussion, one of the managers suggests that number of employeesmight be better at explaining cost than store revenues. As a resultof that suggestion, managers collected the following informationfrom last year’s operations (revenues and costs in thousands ofdollars):

StoreCostsEmployeesRevenues
101$2,32340$5,881
1021,926254,424
1032,941286,983
1042,728376,937
1052,497495,322
1065,206503,339
1072,924444,807
1083,168402,829
1092,775284,709
1105,917574,640
1112,452323,806
1123,128285,005
1133,282373,298
1144,880424,910
1155,157544,889

d-1. Enter the regression coefficients.

d-2. Estimate the cost of a store with 42employees using the results from a simple regression of store coston employees.

Enter the regression coefficients. (Round your answers to 2decimal places. Negative amounts should be indicated by a minussign.)

Intercept
Employees

Estimate the cost of a store with 42 employees using the resultsfrom a simple regression of store cost on employees. (Round yourintermediate calculations and final answer to 2 decimalplaces.)

Store cost

Answer & Explanation Solved by verified expert
4.5 Ratings (600 Votes)
The summary of the regression is shown below Your questions have been addressed subsequently SUMMARY OUTPUT Regression Statistics Multiple R 0729124426 R Square 0531622429 Adjusted R Square 0495593385 Standard    See Answer
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Transcribed Image Text

Davis Stores sells clothing in 15 stores located around thesouthwestern United States. The managers at Davis are consideringexpanding by opening new stores and are interested in estimatingcosts in potential new locations. They believe that costs aredriven in large part by store volume measured by revenue. During adiscussion, one of the managers suggests that number of employeesmight be better at explaining cost than store revenues. As a resultof that suggestion, managers collected the following informationfrom last year’s operations (revenues and costs in thousands ofdollars):StoreCostsEmployeesRevenues101$2,32340$5,8811021,926254,4241032,941286,9831042,728376,9371052,497495,3221065,206503,3391072,924444,8071083,168402,8291092,775284,7091105,917574,6401112,452323,8061123,128285,0051133,282373,2981144,880424,9101155,157544,889d-1. Enter the regression coefficients.d-2. Estimate the cost of a store with 42employees using the results from a simple regression of store coston employees.Enter the regression coefficients. (Round your answers to 2decimal places. Negative amounts should be indicated by a minussign.)InterceptEmployeesEstimate the cost of a store with 42 employees using the resultsfrom a simple regression of store cost on employees. (Round yourintermediate calculations and final answer to 2 decimalplaces.)Store cost

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