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Posted: April 27th, 2019

Improve the coefficient of determination- Microeconomics

Improve the coefficient of determination- Microeconomics

The Pizza Company is considering entering the marketplace in your community. Use the information from “The Pizza Company Data” worksheet, located in Week 3 of your course shell, to complete this assignment. By conducting a demand analysis and forecast for pizza, you will be able to make a decision whether The Pizza Company should establish a presence in your community.Write a three to five (3-5) page paper in which you:

1. Use Excel or other calculation software to input the data 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 in your town or community. Explain any additional variables that may improve the coefficient of determination.

2. Test the statistical significance of the independent variables and the regression equation, indicating how it will impact your decision to open the pizza shop.

3. Forecast the demand for pizza for the next four (4) periods using the regression equation.

4. Based on the forecasted demand, determine whether The Pizza Company should establish an operation in your community. Provide a rationale and support for the decision.

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