The purpose of this assignment is to help you practice skills that are essential to success in this course and your professional life after graduation. You will conduct a forecast. Almost all decisions by managers involve a forecast.
You will build a variety of skills. For this assignment, you will seek out quality data, choose a time horizon, select a forecasting technique, make the forecast, and critique the goodness of fit in the regression equation. Additionally, you will build general education skills, critical thinking, communication, and information literacy.
ForecastÂ – Conduct a forecast by choosing and using simple regression analysis given data as an input, and evaluate the forecast result by the criteria of the regression equation.
Use the following scenario and data:
Â·Â Scenario –Â FlyHigh airlines is test marketing their boxed snacks sold on their short flights. FlyHigh selected 15 different markets for a quarter-long sales test. For the entire quarter, the boxed snack was sold onboard at 4 different prices starting at $8.50 a box. Data was collected on the average income of the passenger aboard the flights. Data was also collected that represented a snack purchased off-board (presumably in the airport) and carried on by the passenger. The amount of passengers that this boxed snack was available to and the ultimate quantity sold was also collected.
Forecast Data can be found in the attachment section
Answer the following in your Forecast and Recommendation:
Â· What is your selected linear demand function given the variables presented? (hint: Qd = x + y + z + qâ€¦.)
Â· What is the estimated linear demand function (Q = â€¦.)?
Â· What percentage of the variation in sales (Q) is explained by the demand function?
Â· What if the price of the boxed lunch sold on board was increased by $2?
Â· If a typical market sold a boxed snack at $8.75, their average income was $80,378, the off-board priced snack was $7.50, and the population was 6,378, what is the expected sales?
Â· Given this information, as a manager, make a recommendation to FlyHigh airlines on the price of their boxed snacks.
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