Question

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 and is copied below. 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.

Location	Revenue	Square foot	Population	Manager
1	$ 23,665,319.22	48720.39	146073	Alice
2	$ 20,066,838.98	40778.72	134878	Bill
3	$ 23,508,691.46	21654.19	225131	Chauncey
4	$ 11,748,300.32	33344.11	49987	Deter
5	$ 33,450,105.86	116006.4	89939	Alice
6	$ 18,248,754.69	44655.98	53514	Alice
7	$ 10,943,196.86	8549.08	127423	Deter
8	$ 32,934,788.04	157424.48	26790	Deter
9	$ 16,824,187.57	63075.32	17092	Bill
10	$ 19,285,241.45	53256.79	86985	Chauncey

Answer 1