You own a group of convenience stores in North Carolina and are interested in developing a forecasting model to use in predicting the average daily sales of a given convenience store to guide future purchases or construction of additional stores. You have collected the following data on your current stores:
Store
|
Daily Sales
|
Store Area
|
Parking Spaces
|
Household Income
|
1
|
1840.00
|
532
|
6
|
44,000
|
2
|
1746.00
|
478
|
4
|
51,000
|
3
|
1812.00
|
530
|
7
|
45,000
|
4
|
1806.00
|
508
|
7
|
46,000
|
5
|
1792.00
|
514
|
5
|
44,000
|
6
|
1825.00
|
556
|
6
|
46,000
|
7
|
1811.00
|
541
|
4
|
49,000
|
8
|
1803.00
|
513
|
6
|
52,000
|
9
|
1830.00
|
532
|
5
|
46,000
|
10
|
1827.00
|
537
|
5
|
46,000
|
11
|
1764.00
|
499
|
3
|
48,000
|
12
|
1763.00
|
490
|
4
|
48,000
|
13
|
1825.00
|
510
|
8
|
47,000
|
14
|
1846.00
|
516
|
8
|
45,000
|
15
|
1815
|
482
|
7
|
43,000
|
- What factors should be used in forecasting daily sales and WHY?
- You have been offered two stores for sale and can afford only one at this time. The first is 500 ft2, 6 parking places and in a neighborhood with a household income of 50,000/yr. The other is 560 ft2, 8 parking places in an area with a household income of 42,500/yr. Which store should have higher daily sales?