Regression analysis of operating expense-staff size

Reference no: EM1396718

In this study we will consider the current issues of operational expenses in relation to the number of staff and number of branches being experienced by 123 Finance Inc. With current company staff being split between eight separate branches located across the United States, it has been suggested that a means of reducing daily operational costs for the company may be through the consolidation of these various branches. In this way functions of the company that are currently divided can be combined into a reduced number of locations, potentially increasing productivity, whilst reducing daily expenditure.

The current division of 123 Finance Inc.'s staff numbers can be observed in this following chart:

Location Daily Operating Expense Head Count of Personnel

Dallas, TX $40,000 300

Phoenix, AZ $15,000 150

Kansas City, MO $15,000 150

Chicago, IL $38,000 275

Atlanta, GA $10,000 100

Tulsa, OK $17,500 180

Denver, CO $22,000 200

Sacramento, CA $35,000 225

Reference no: EM1396718

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