Making Decisions Based on Demand and Forecasting

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Assignment 1: Making Decisions Based on Demand and Forecasting

Assignment 1: Making Decisions Based on Demand and Forecasting ECO 550 January 24, 2013

Assignment 1: Making Decisions Based on Demand and Forecasting Page 1

I have been considering opening a Domino’s Pizza in my community within the Virginia Beach area. In this paper I will present to you, a data analysis and a forecast of Domino Pizza’s sales revenue that consist of the demographics within my community. These demographics consist of the population size, the average income per household and the independent variables which include the price in pizza and soda. This demand analysis will be used to give an estimated forecast that will assist in my business making decision technique, which will determine if it will be beneficial for me to open a Domino’s Pizza in my area. To determine if I will enter into the market place in Virginia Beach, I will research the reported demographic and independent variables that are relevant to complete a demand analysis that has been provided to me from different resources within my community. By using Excel to calculate, I will input the data that I have collected to create an estimated regression analysis. Once the calculation has been provided, I will be able to interpret the coefficient of determination, and how it has provided an influence on my decision to open the pizza business in my area. Variables. The significant dependent variable (Y) that was used to create this research was the pizza and soda sales revenue. This data was taken from the last four years, which include 2008 through 2011. The total sales revenue in the Virginia Beach area, for Domino’s Pizza, in 2008 was $100,425, in 2009 the sales was $100,404, in 2010 the sales increased to $100,571 and 2011 there was a slight increase of…...

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