Simple regression results from the data of Davis Stores (Exercise 5-39) are as follows:
Equation:
Store costs = $1,604.4 + (Revenue × 53.6%)
Statistical data
Correlation coefficient . . . . . . . . . . . . . . . . . . . . . . . .835
R2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .698
Required
a. Estimate store costs for a store with revenue of $2.5 million.
b. What percentage of the variation in store costs is explained by the independent variable?