ECO 550

Assignment 1 Demand Estimation

Assignment 1: Making Decisions Based on Demand and Forecasting

1. 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.

      When we analyze the independent variable as pizza price and pizza sale (dependent variable), so we are getting:

Table 1.1

Price per pizza () P sales per day (quantity) Y promotional expenditures per day () A disposable income (M) () M

90 130 37.5

80 120 38.5

70...