The sales data has been downloaded using the database of the college for the company Flight Centre. It is a firm in the travel industry and it sales and operations depend on the economic growth of Australia. If the economy is growing then the people of Australia will have more revenue and thus will spend more. As the people of Australia will spend more there are chances that the firm will receive requests and thus there will be more sales.
Here the firm sales are regressed against three relevant factors. The first chosen is the investment made by the firm. Investment is an important aspect for the firm growth. Investment determines if the firm will be able to handle the increasing demands in the future. Also increasing investment determines that the firm is growing and thus the firm is investing for the increased sales in the future. If the firm sales increases and the firm do not make investment then the firm will not be able to handle the increased sales and thus would lose out revenue. Thus the Investment is very important for the firm. Also if the firm revenue is not increasing then the firm investment will not be sustainable as it needs money to invest and thus it will not be able to invest in the firm.
The next term given is the GDP. GDP is an important concept which can help the firm to increase the revenues. Since the firm is in the business which is not an essential commodity, people will buy the services of the firm when they have more income. Increasing GDP puts money into the hands of the people and thus they would be able to spend more as they would have more money. Thus GDP is an important aspect in realizing the sales the of the firm.