Question

A chain of bookstores wants to develop multiple regression models of sales for two purposes. First, they want to be able to evaluate potential locations for new stores, and, second, they want to establish norms that can be used to evaluate the performance of store managers (i.e., they want to be able to predict the sales of an "average" store, so they can judge the input of each manager). *Note this is essentially proposing theories of what makes a location attractive and what makes a store successful.

a. Identify the variables that should be included in the model for locations.

c. Identify the variables that should be included in the model for evaluating managers.

Answer 1

the chain of book store want to develop multiple regression models of sales for two purposes

a) for a modelling multiple regression model when we correctly identify the locations where most of the books is sales it depends the no of branch and it is available to each univerity corner and lso the place where maximum person walking that is near the garden etc.

c) the variable that should be included in the model for evaluating mangers is performance metric of sales manger in the each book stores ,number of sales managers,employee satisfaction score,revenue of the branch etc.