13.3 A small business analyst seeks to determine which variables should be used to predict small-business mean annual rev-enue for U.S. metropolitan areas. The analyst decides to consider the independent variables age, the mean age (in months) of small businesses in the metropolitan area; and BizAnalyzer, the mean BizAnalyzer score of small businesses in the metropolitan area. (The BizAnalyzer score measures on a scale of 1 to100 the level of risk that the small businesses in the metropolitan area present to potential lenders.) The dependent variable, revenue, is mean an-nual revenue. Using data collected from a sample of 25 metropoli-tan areas, the regression results are:
13.50 The owner of a moving company typically has his most experienced manager predict the total number of labor hours that will be required to complete an upcoming move. This approach has proved useful in the past, but the owner has the business ob-jective of developing a more accurate method of predicting labor hours. In a preliminary effort to provide a more accurate method, the owner has decided to use the number of cubic feet moved and the number of pieces of large furniture as the independent vari-ables and has collected data for 36 moves in which the origin and destination were within the borough of Manhattan in New York City and the travel time was an insignificant portion of the hours worked. The data are organized and stored in Moving .