Starbucks is a resounding restaurant success story. Beginningwith its first coffee house in 1971, Starbucks has grown to morethan 22,500 stores. Opening up its first international outlet inthe mid-1990s, Starbucks now operates in more than 67 countriesoutside of North America. besides selling beverages, pastries,confections, and coffee-related accessories and equipment at itsretail outlets, Starbucks also purchases and roasts high-qualitycoffee beans in several locations. The company's objective is tobecome the most recognized and respected brand in the world.Starbucks maintains a strong environmental orientation and iscommitted to taking a leadership position environmentally. Inaddition, the company has won awards for corporate socialresponsibility through its community-building programs, its strongcommitment to its origins (coffee producers, family, community),and the Starbucks Foundation, which is dedicated to creating hope,discovery, and opportunity in the communities where Starbucksresides.

In November 2001, Starbucks launched its prepaid (debit)Starbucks Card. The card, which holds between $5 and $500, can beused at virtually any Starbucks location. The card was so popularwhen it first was released that many stores ran out. By mid-2002,Starbucks had activated more than 5 million of these cards. TheStarbucks Card has surpassed the $25 billion mark for totalactivations and reloads since its introduction. As customers"reload" the cards, it appears they are placing more money on themthan the initial value of the card.

Starbucks has gone on to promote their Starbucks Card as aflexible marketing tools that can be used by individuals as a giftof thanks and appreciation for friendship or service and can beused by companies to reward loyal customers and as an incentive toemployees.

Starbucks is interested in understanding the reasons why somepeople purchase debit cards with higher prepaid amounts than doother people. Suppose a study of 25 randomly selected prepaid cardpurchasers is taken. Respondents are asked the amount of theprepaid card (CARDAMT), the customer's age (AGE), the number ofdays per month the customer makes a purchase at Starbucks (DAYS),the number of cups of coffee the customer drinks per day (COFFEE),and the customer's income (INCOME). The data are included in thefile attached below. Using these data, develop a multipleregression model to study how well the amount of the prepaid cardcan be predicted by the other variables and which variables seem tobe more promising in doing the predictions. Additionally, whatsales implications might be evident from this analysis?

VARIABLE NAME	MNEMONIC	UNITS
Amount of Prepaid Card	CARDAMT	$
Age	AGE	years
Days per Month at Starbucks	DAYS	days
Cups of Coffee per Day	COFFEE	cups
Income	INCOME	$1,000

OBSERVATION #	CARDAMT ($)	AGE (Years)	DAYS (days)	COFFEE (cups)	INCOME ($1,000)
1	5	25	4	1	20
2	25	30	12	5	35
3	10	27	10	4	30
4	5	42	8	5	30
5	15	29	11	8	25
6	50	25	12	5	60
7	10	50	8	3	30
8	15	45	6	5	35
9	5	32	16	7	25
10	5	23	10	1	20
11	20	40	18	5	40
12	35	35	12	3	40
13	40	28	10	3	50
14	15	33	12	2	30
15	200	40	15	5	80
16	15	37	3	1	30
17	40	51	10	8	35
18	5	20	8	4	25
19	30	26	15	5	35
20	100	38	19	10	45
21	30	27	12	3	35
22	25	29	14	6	35
23	25	34	10	4	45
24	50	30	6	3	55
25	15	22	8	5	30

QUESTION 6 f) Interpret the 80% Confidence interval for the variable "COFFEE" We are 80% confident that the is expected to , on average, (variable mnemonic) (increase/decrease) by between to for each additional increase (2 decimal places) (2 decimal places) (units of variable) of 1 of holding constant and (units of variable) (variable mnemonic) (variable mnemonics)