Leasing agents from the Triangle Mall Management Corporation have suggested that Sunflowers consider several locations in some of Triangle’s newly renovated lifestyle malls that cater to shoppers with higher-than-mean disposable income. Although the locations are smaller than the typical Sunflowers location, the leasing agents argue that higher-than-mean disposable income in the surrounding community is a better predictor than store size of higher sales. The leasing agents maintain that sample data from 14 Sunflowers stores prove that this is true.
Open Triangle_Sunflower.pdf and review the leasing agents’ proposal and supporting documents.
Then answer the following questions:
a. Should mean disposable income be used to predict sales based on the sample of 14 Sunflowers stores?
b. Should the management of Sunflowers accept the claims of Triangle’s leasing agents? Why or why not?
c. Is it possible that the mean disposable income of the surrounding area is not an important factor in leasing new locations? Explain.
d. Are there any other factors not mentioned by the leasing agents that might be relevant to the store leasing decision?
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