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The accounting department at Box and Go Apparel wishes to estimate the net profit for each of the chain’s many stores on the basis of the number of employees in the store, overhead costs, average markup, and theft loss. A few statistics from the stores are:
a. The dependent variable is _________________.
b. The general equation for this problem is _________________.
c. The multiple regression equation was computed to be yˆ = 67 + 8x1 – 10x2 + 0.004x3 – 3x4. What are the predicted sales for a store with 112 employees, an overhead cost of $65,000, a markup rate of 50%, and a loss from theft of $50,000?
d. Suppose R2 was computed to be .86. Explain.
e. Suppose that the multiple standard error of estimate was 3 (in $ thousands). Explain what this means in thisproblem. |
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