Economics Operations

see attachment for assignment

Domino’s Pizza is considering entering the marketplace in your community (Boston MA). Conduct research about the demographics of your community using US government statistics websites for population and demographic data that includes size of population and average income per household, and other independent variables, such as price of pizza and price of soda in the area. By conducting a demand analysis and forecast for pizza, you should be able to make a decision whether Domino’s should establish a presence in your community.

1. Report the demographic and independent variables that are relevant to complete a demand analysis providing a rationale for selection of variables (such as how many children are in the house, and how many people currently eat pizza).

2. Using calculation software (like excel) input the data you collected in criterion one to calculate an estimated regression. Then, from the calculation provided, interpret the coefficient of determination, indicating how it will influence your decision to open the pizza business. Explain any additional variables that may improve the coefficient of determination (such as offering delivery service).

3. Forecast the demand for pizza in the community for the next four (4) months using the regression equation, including the assumptions that were used to create the demand. Justify assumptions made related to the forecast.

4. Based on the forecasting demand, determine whether Domino’s pizza should establish a restaurant in your community. Provide a rationale and support for your decision.

MAKE SURE YOU USE AT LEAST 2 US GOVERNMENT STATISTICS INFORMATION DATABASES THESE ARE ONLINE.

DUE 4.25.13