Domino’s Pizza is considering entering the marketplace in your community. Conduct research about the demographics of your community, for example the population size and average income per household and other independent variables, such as price of pizza and price of soda, for this assignment. By conducting a demand analysis and forecast for pizza, you will be able to make a decision whether Domino’s should establish a presence in your community.
Write a 3-5 page paper in which you:
1. Report the demographic and independent variables that are relevant to complete a demand analysis providing a rationale for the selection of the variables.
2. Using Excel or other calculation software, 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.
3. Test the statistical significance of the variables and the regression equation indicating how it will impact your decision to open the pizza business.
4. Forecast the demand for pizza in your community for the next four months in your community, using the regression equation including the assumptions that were used to create the demand. Justify the assumptions made related to the forecast.
5. Based on the forecasting demand, determine whether Dominos should establish a restaurant in your community. Provide a rational and support for the decision.
6. Cite at least two different government sources for the demographic information you collected.
Your assignment must follow these formatting requirements:
• Be typed, double-spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
• Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
• Apply the concepts of supply and demand to determine the impact of changes in market conditions in the short run and long run, and the economic impact on a company’s operations.
• Use technology and information resources to research issues in managerial economics and globalization.
• Write clearly and concisely about managerial economics and globalization using proper writing mechanics.
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