Making Decisions Based on Demand Forecasting

Running Head: DEMAND AND FORECASTING

Making Decisions Based on Demand and Forecasting

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Making Decisions Based on Demand and Forecasting

The demographics used for the demand analysis are the average yearly income of the house hold in Georgia, the total yearly population, and average kids per house. The rationale behind choosing these demographics is that the demand is highly associated with the average income, and can have a great impact on the demand of the economy, for higher the income, the higher the spending ability of an average house hold. Therefore, it can also be said that the average income is directly proportional to the spending ability of an average house hold, whereas as far as total yearly population is concerned, demand is also associated with the total population, as for demand arises with rise in population. Average kids per house hold also have a strong link with demand. Considering the fact that pizza is highly popular among kids, and is the cause of its major demand.

The other independent variables used for conducting a demand analysis are price of the pizza, and price of the soda. The rationale behind choosing these demographics is that the demand is also highly associated with price, as per the demand and supply law, the lower the price the higher the demand, and the higher the price, the lower the demand. Pizza and soda are two main products of a pizza restaurant, and its prices can have a great impact on the overall demand for it.

The dependent variable used was an yearly forecasted demand for pizza with respect to the various independent variables mentioned above which are yearly average income, yearly total population, average kids per house hold, price of the soda and price of the pizza.

|Demand |Price of Pizza $ |Price of Soda $ |Average Income Per House Hold $ |Population |kids per house...