Sales has been regressed against Advertising expense, Car spaces, number of staff and the number of trading hours to check which of the factors have the most effect on sales and if anything can be done so that the sales increases.
The coefficient for the Adverting expense comes to 0.0379 and its t value is approximately equal to 10 and it p value is close to zero. This indicates that advertising expense is statistically significant and hence affects the sale numbers.
Car spaces coefficient is 0.088. Its p value is 0.46 which indicates that it is not statistically significant even at 10% and hence the car spaces don’t seem to affect the sales at a particular store.
Number of staff value is 0.0577 and its p value is 0.0188. Thus it can be seen that the variable is significant at 1% level.
Lastly number of trading hours value is -0.0025 and its p value is 0.7635. Thus the value is not statistically significant but it tends to affect the sales in a negative manner and hence the firm should look into it.
Thus only number of staff and the advertising staff seems to affect the sales and the firm need to see the marginal revenue from the increasing staff or advertising expense. Firm needs to check whether the cost of additional staff justifies the increase in revenue and not look at the sales on a standalone basis.
Thus a complete analysis of the gross profit of all the stores has been done. A more comprehensive analysis on the cost of the stores can help to make judicial decisions for the firm.