A Description of the Situation
A recent outbreak of an infectious disease that has been globally declared a pandemic has forced the government to limit the movement of individuals. As such the government has affected a curfew that starts at 0700hrs. Being one of the persons responsible for making decisions for the leading retail stores, it is thought that the chosen closing time of the store within the curfew hours and the number of employees on shift affects the revenue of the business. The complexity of the decision arises from the fact that the closing time relates to the number of customers that come to the store. On the other hand, keeping workers on shift to closer the curfew time requires the store to facilitate their transport or accommodation. The employees’ number also determines their effectiveness and degree of wasting manpower. Finally, the selected closing time affects the morale of the employee ion turn affecting the revenue of the business.
A Description of the variables
The dependent variable is the monthly revenue of the retail store. The independent variables, on the other hand, will be the closing time of the store, and the number of employees on shift. Thuy the monthly revenue of the of the retail store is denoted as Y while the closing time of the store, and the number of employees on shift will be denoted as X 1 and X 2 respectively.
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A Description of How the Multiple linear Regression Will Improve the Quality of the Decision Made
The multiple linear regression will facilitate in establishing the best line of fit that considers both time of closing the store and the number of staff to keep. As such the two independent variables will be chosen optimally to yield the maximum revenue.
The Potential Challenges of Using the Multiple Linear Regressions in Optimizing the Operation
The challenge of using multiple linear regressions in the above example is the kind of data used. For instance, the effect of the closing time may not have accurate data that reflects the pandemic setting. As such it may lead to a correlation that would hold in normal business operation but vary in the current pandemic setting. Also, the data used to dumpy code in the number of employees to put on shift may not represent the accurate effect of the number on the revenue.
