Question

When big companies in Canada leveled their management levels (hierarchy) in the 1990s, many middle managers were laid off and set up their own companies or bought franchises. This happened along with the fact that most of the new jobs in Canada were created by small businesses, and entrepreneurship became the national spotlight. The business listed in the following table is one of the fastest growing in the franchise industry.

franchise	Type of Franchise	Number of New Franchises
Blimpie	Food	330
Tower Cleaning	Cleaning	55
CleanNet USA	Cleaning	430
KFC	Food	169
Comprehensive Business Services	Accounting / Consultant	58
Jani-King	Cleaning	451
Coverall Cleaning Concepts	Cleaning	435
McDonald’s	Food	744
Applebee’s	Food	124
Padgett Business Services	Accounting / Consultant	47
Super 8 Motels	Hospitality	181
General Business Services	Accounting / Consultant	44
LedgerPlus	Accounting / Consultant	79
Sonic Drive In	Food	73
Pizza Inn	Food	39
Holiday Inn Worldwide	Hospitality	150
Choice Hotels Int’l	Hospitality	93
Merry Maids	Cleaning	102
Ckeckers Drive-In	Food	45

Question

1.Propose a regression model that allows you to compare the average number of new franchises for the 4 types of franchise (food, cleaning, accounting / consultancy, and hospitality).

2. Determine the variables (dependent and independent) used in the model.

Answer 1