Case: Forecasting with Regression
Key Objective: Crusty Pizza executives are considering opening several new stores and they would like a forecast of monthly profit for each store. Use data in two worksheets named “Fall 13” and “Case a”.
a) Use the data from the first worksheet (60 stores). Perform simple linear regression on the key variables to address the key study objective.
b) Comment on goodness of fit and discuss which variables would be good indicators of profit, and why.
c) Use regression models developed, along with Worksheet “Case a” to predict monthly profit for each of the 20 stores.
List the top 5, and bottom 5 locations you would recommend to Crusty Pizza Company to open.