Wk $2$ Summative Assessment: Predictive and Qualitative Analysis Report

Top of Form

Bottom of Form

As a$$sales manager, you will$$use statistical methods to support actionable business decisions$$for Pastas R Us$,$ Inc., a fast$-$casual restaurant chain specializing in noodle$-$based dishes, soups, and salads. In simpler terms, you are reviewing available information to determine if what your company is doing works. In this assessment, you use$$predictive and qualitative analysis$$skills to create a report for the executive team from available Pastas R Us$,$ Inc. data about the effectiveness of the current expansion criteria, loyalty card program, and marketing position.$$

$$

Scenario

Since its inception, the Pastas R Us business development team has favored opening new restaurants in areas that satisfy the following demographic conditions within a $3-$mile radius:

Median age is between $2545$ years old.

Household median income is above the national average.

At least $15\%$ of the adult population is college educated.

$$

Last year, the marketing department rolled out a loyalty card strategy to increase sales. Under this program, customers present their loyalty card when paying for their orders and receive some free food after making $10$ purchases.

$$

The company has collected data from its $74$ restaurants to track important variables such as average sales per customer, year$-$on$-$year sales growth, sales per sq$.$ ft$.,$ loyalty card usage as a percentage of sales, and others. A key metric of financial performance in the restaurant industry is annual sales per sq$.$ ft$.$ For example, if a $1,200$ sq$.$ ft$.$ restaurant recorded $$2$ million in sales last year, then it sold $$1,667$ per sq$.$ ft$.$

$$

Preparation

Analyze the$$Pastas R Us charts$$file for your report, including the scatter plots and regression equations for the following pairs of variables:

"Sales$/$Sq$.$Ft$.($$$)$ versus $$Bach$.$ Degrees $(\%)$

$$Median Income $($$$)$ versus $$Sales$/$Sq$.$Ft$.($$$)$

$$Median Age $($Years$)$ versus $$Sales$/$Sq$.$Ft$.($$$)$

$$Loyalty Card $(\%)$ versus $$Sales Growth $(\%)$