Making Decisions Based on Demand and Forecasting



Making Decisions Based on Demand and Forecasting

The results from the regression analysis show the significance of the demand function for Pizza Company. The dependent variable is the demand of pizza which theoretically depends on its own prices, prices of the competitors, advertisement costs for Pizza Company and the income of consumers in different markets.

Regression Statistics

Multiple R

0.913

R Square

0.833

Adjusted R Square

0.806

The results show that R2 = 0.833 i.e. the independent variables are responsible for almost 83.3% variation in the quantity demanded for pizza. Further, the adjusted R2 = 0.806 i.e. adding multiple variables in the ...