705 Words3 Pages

Assignment 1:
Making Decisions Based on Demand and Forecasting
ECO 550 – Managerial Economics and Globalization
Thursdays (6:00-10:00PM)
November 24, 2013
The Pizza Company is considering entering the marketplace in your community. Using this output, we can derive estimated regression line for demand for pizza as; determine that Price (P) = $175, Competitor Price (CP) = $250, Advertisement (A) = $325, Income (I) = $95
Q= 128,832.2 – 19,876 * (P) + 15,467.94 * (CP) + 0.260701 * (A) + 8.780403 * (I)
Q= 128,832.2 – 19,876 * 175 + 15,467.64 * 250 + 0.260701 * 325 + 8.780403 * 95
Q= 108,956.2 * 15,642.64 * 250.26 * 333.78 * 95
Q= 518,361.1
Coefficient of determination (or R- square) = 0.977914223. This means 97.79% of the variation*…show more content…*

By using the P-value to test the significance of the independent variables, you will notice that 2 of your independent variables are significance on the .05 level. (Price and Competitor Price). This is because they P-value are lower than .05. (Price = .0000554, competitor price = .000146656). Advertising is significant on the .10 level (AD = .010) In order to do the forecast, the Pizza Company would have to use this formula to calculate the four (4) periods. Y = 114643.899 – 18776.179(P) + 15990.395(Px) + 0.233(Ad) + 8.990(I). The Pizza Company Forecast | Pizza Sold | Period 1 | Period 2 | Period 3 | Period 4 | 616,178.15 | 4626119 | 45802950.7 | 339972197.2 | 3360704588 | 570,817.13 | 4396869 | 42469558.5 | 323110448.5 | 3115742237 | 609,111.50 | 4484901 | 45284541.8 | 329567595.7 | 3322221262 | 586,207.71 | 4590246 | 43598457.8 | 337294648.5 | 3198547002 | 556,023.52 | 4157422 | 41384447.2 | 305547008.1 | 3036149325 | 624,137.36 | 4357548 | 46380597.5 | 320226256.1 | 3402616948

By using the P-value to test the significance of the independent variables, you will notice that 2 of your independent variables are significance on the .05 level. (Price and Competitor Price). This is because they P-value are lower than .05. (Price = .0000554, competitor price = .000146656). Advertising is significant on the .10 level (AD = .010) In order to do the forecast, the Pizza Company would have to use this formula to calculate the four (4) periods. Y = 114643.899 – 18776.179(P) + 15990.395(Px) + 0.233(Ad) + 8.990(I). The Pizza Company Forecast | Pizza Sold | Period 1 | Period 2 | Period 3 | Period 4 | 616,178.15 | 4626119 | 45802950.7 | 339972197.2 | 3360704588 | 570,817.13 | 4396869 | 42469558.5 | 323110448.5 | 3115742237 | 609,111.50 | 4484901 | 45284541.8 | 329567595.7 | 3322221262 | 586,207.71 | 4590246 | 43598457.8 | 337294648.5 | 3198547002 | 556,023.52 | 4157422 | 41384447.2 | 305547008.1 | 3036149325 | 624,137.36 | 4357548 | 46380597.5 | 320226256.1 | 3402616948

Related

## Summary Of Process Design Matrix And Summary Ops 571 Week 3

709 Words | 3 Pages(2013, March 1). Papa Murphy's Goes Gourmet with Primo Pizza Line. Retrieved April 15, 2015, from QSR: http://www.qsrmagazine.com/news/papa-murphys-goes-gourmet-primo-pizza-line Papa Murphy's International, L. (2015). Our Story. Retrieved April 16, 2015, from Papa Murphy's: http://www.papamurphys.com/our-story/ Tice, C. (2014, July 7).

## Algebra 2 Fall Exam Review Paper

2068 Words | 9 PagesMr. Krabs makes a profit of $3 for each Krusty Krab Pizza and $1 for each Krabby Patty. How many Krusty Krab Pizzas and Krabby Patties must Sponge Bob make in order for Mr. Krabs to maximize his profit? 15. Which constraint does not represent the data in the above problem? a) b) c) d) 16.

## In-N-Out Burger Essay

3383 Words | 14 PagesCase study analysis | prepared by PPrepared by THINK TANK TEAMOOh, Seung Yeon Kim, Jae Hoon Park, Jee Youn Zhao, JianwenKKim, Seunghwan Han, Yuchen | Table of Contents 1. Executive Summary 1 1.1 Fast Food Industry Facts in USA 2 1.2 Company History 4 1.3 Competitors 5 2. Long term and Short term Goal 7 2.1 Short term Goal 7 2.2 Long term Goal 8 3. Impediment and SWOT analysis 9 3.1 Impediment 9 3.2 SWOT analysis 9 4. Solution and Suggestion 11 4.1.

## Porthos Essay

657 Words | 3 PagesOnce capacity is known, Porthos owners can decide if they are able to take on the additional demand. You have been asked to help Porthos owners with their decision by analyzing their current production process. Current average daily demand is 1000 lbs of bread. The average order size is 50 lbs. Porthos owners must decide whether they can handle the additional demand from the new restaurant chain.

## You Found Me Poem

1705 Words | 7 PagesJa eat yet? The Fray in their song “You Found Me” stated that “I found God at first and Amistad,” but that is completely wrong. I found God making sandwiches at 152 West Girard Ave, in all of places. I started this assignment looking for the best Italian hoagie in Philadelphia but also ended up finding the best sandwich shop in Philly. I searched on Google for the “best Italian hoagie in Philly.” WIP 610 am sports radio’s, Glen Macnow did a search of 60 or so shops that made Italian hoagies reported Philly.com (Mucha).

## Mat 540 Case Study

865 Words | 4 PagesP and V defined similarly. Objective: Maximize profit = $1.45C + $1.75P + $1.98V Subject to: |C |+ P |+ V |( |350 |Total pizzas | |C | | |( |120 |Max cheese | | |P | |( |150 |Max pepperoni

## Garrison 13e Practice

645 Words | 3 Pages4. Ricky’s Fiesta Diner is a family-owned restaurant that serves pizza and Italian dishes. Data concerning the restaurant’s monthly revenues and costs appear below (q refers to the number of meals served): | |Formula | |Revenue

## Mkt 421 Week 1 Defining Marketing Analysis

646 Words | 3 PagesThe rewards program at Papa John’s when a consumer earns 25 points he or she is eligible for a free pizza. Dominos has the best price for two medium pizzas. Pizza Hut has the best deal on their family box dinner that includes pizza, breadsticks, and cinnamon sticks. These companies use the marketing tools to be competitive with each other. In review one has defined his or her personal definition of marketing and two other definitions the companies would use to market their products and services.

## Assignment 1: Equation Paper

511 Words | 3 PagesYou have a coupon good for $8 off the price of any large pizza. You also get a 10% discount on any pizza if you show your student ID. How much more would you pay for a large pizza if the cashier applies the coupon first? a. | $0.00 | c. | $.10 | b.

## Sci/241: Understanding Food Labels

564 Words | 3 PagesThe first nutrients listed are the ones that Americans typically get enough, or too much of. One should limit their intake of these nutrients. The second nutrients listed are the ones that Americans don’t typically get enough of, and should make an effort to get enough of them. These are dietary fibers and vitamins. The fifth key fact on a food label is the footnote, which tells you the percentage of daily value is based on a 2,000 calorie diet.

### Summary Of Process Design Matrix And Summary Ops 571 Week 3

709 Words | 3 Pages### Algebra 2 Fall Exam Review Paper

2068 Words | 9 Pages### In-N-Out Burger Essay

3383 Words | 14 Pages### Porthos Essay

657 Words | 3 Pages### You Found Me Poem

1705 Words | 7 Pages### Mat 540 Case Study

865 Words | 4 Pages### Garrison 13e Practice

645 Words | 3 Pages### Mkt 421 Week 1 Defining Marketing Analysis

646 Words | 3 Pages### Assignment 1: Equation Paper

511 Words | 3 Pages### Sci/241: Understanding Food Labels

564 Words | 3 Pages