Project

Abstract:

The research statistically determines the profits of supermarkets based on the sales of food items, non-food items and size of supermarket. The regression model was done on both models to determine that in both models, increase in sales and size of stores increases the overall profit. However the model with independent variables sales of food items, sales of non-food items and size of stores is the more relevant model.

Introduction:

There are 10 supermarkets with different kinds of products. These products are food products and non-food products. The paper wants to understand the relation between the profits these supermarkets generate with relation to the sales of food products and non-food products along with the size of the markets. This problem question wants to understand the relation between the sales and size to the overall profit of the organization.

The research would also try to see if the relation between just food products and size against profits is different than the relation of profits with food items, non food items and size of supermarkets.

Overall there would be 2 regressions models used in this research to determine the sales of supermarkets.

The Method

In this paper, there are 3 variables that are independent. We need to understand the relation of dependent variable (Profit) with these 3 variables to understand the equation to find profit. To solve this problem, regression analysis method is used. In regression analysis, all three variables are taken as independent variables and thus the equation is determined.

In the second regression, the food sales are removed. Here the relation between only non-food sales and size of supermarket to the profit is understood.