Question 4 (1 point)

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

Approximately what percentage of the variation in Annual Net Sales is accounted for by these 5 variables in this model?

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

	99.11% of variation in the Annual Net Sales is accounted for by Rent, Inventory, Advertising, Sales per Month and # of Competitor store in this model.
	27.62% of variation in the Annual Net Sales is accounted for by Rent, Inventory, Advertising, Sales per Month and # of Competitor store in this model.
	99.25% of variation in the Annual Net Sales is accounted for by Rent, Inventory, Advertising, Sales per Month and # of Competitor store in this model.
	98.24% of variation in the Annual Net Sales is accounted for by Rent, Inventory, Advertising, Sales per Month and # of Competitor store in this model.