Question

This is about using multiple Linear Regression with indicator variable with 10 stores. Key question is deciding on management choice. Need to decide who to promote and how much to pay them. Need description and the answer with details at to why and who the manager is that was chosen. There are four managers to choose from.

Alice runs locations 1, 5 and 6. Bill runs locations 2 and 9. Chauncey runs locations 3 and 10. Lastly, Deter runs locations 4, 7 and 8.

You are the CEO of Big Grocery. Your company is planning on expanding into new markets. As a part of this endeavor you are expected to make decisions on things such as store size, location and management. To help you make this decision you ask a subordinate (its good to be the CEO) to compile some data for you to help with making your decision. The data is outlined in the Part 1 document.

The key question that we want to address is how do you decide on the management choice for your new store? You have several managers which were introduced in Part 1. You need to decide who to promote to the position of management for the new store.

Assume you are going to pick one of your current managers take over the new store. Use MLR to estimate the manager’s impact on revenue after controlling for the other important variables for which you have data. Justify your estimate, and make a decision on who to promote in your document.

DATA PROVIDED BELOW

Big Grocery Revenue Population Manager Square Footage Location 23,665,319.2248,720.39 146073 Alice Location 20,066,838.9840,778.72 134878 Bil Location 23,508,691.4621,654.19 225131 Chauncey Location 11,748,300.3233,344.11 49987 4 Deter Location 33,450,105.86 116,006.40 89939 Alice Location 18,248,754.6944,655.98 53514 ice Location |10,943,196.868,549.08 127423 7 Deter Location 32,934,788.04157,424.48 26790 Deter Location 16,821,1875763,075.32 17092 Bil Location 19,285,241.4553,256.79 86985 10 Chauncey

Answer 1