Assignment 1
Assignment One: Making Decisions Based on Demand and Forecasting
Jasmine Puente
Econ 550
Prof. Mohammad Sumadi
05/12/213
Overview
Farmington is a fairly small town located in Davis County, UT. The current population for this town is about 18,275 (City Data, 2012). The median income per household in my city from 2000 to 2009 has ranged from an estimate of about $74,250 to about $79,044 for the current day. The average cost of pizza from other pizza places over the years (2000-2013) ranged anywhere from $5.00 to about $18.00 depending on what you want and how you want it prepared. The average household size was 3.40 in Farmington. Hypothetically the amount of pizzas that were ordered would be based on the number of people per household and the income for the household.
Observations
There are a few factors to consider when it comes to the local demographics. One factor would be to consider would be the amount of children in the household, as that would increase the possibility of more pizzas getting ordered for that household. Another factor to consider would be single individuals who work long hours and prefer ordering put as opposed to cooking work. All these factors combined will help us determine if Domino’s should start a business in Farmington.
Other variables that are considered are my substitutes which are Subway, Burger King and Chopsticks. These variables are for those who are health conscious, or are looking for a drive through option or even a local dining experience. These are the other variables that are present in Farmington, not to mention the competitor Papa Johns.
The dependent variable is the number of pizzas sold in the area. Using a regression model we will input the dependent variable; value of pizzas sold, along with the independent variables; population and, median household income.
Analysis
With the average income in Farmington being higher, 79,044, than the income for the overall state, 55,117. The percentage of
Jasmine Puente
Econ 550
Prof. Mohammad Sumadi
05/12/213
Overview
Farmington is a fairly small town located in Davis County, UT. The current population for this town is about 18,275 (City Data, 2012). The median income per household in my city from 2000 to 2009 has ranged from an estimate of about $74,250 to about $79,044 for the current day. The average cost of pizza from other pizza places over the years (2000-2013) ranged anywhere from $5.00 to about $18.00 depending on what you want and how you want it prepared. The average household size was 3.40 in Farmington. Hypothetically the amount of pizzas that were ordered would be based on the number of people per household and the income for the household.
Observations
There are a few factors to consider when it comes to the local demographics. One factor would be to consider would be the amount of children in the household, as that would increase the possibility of more pizzas getting ordered for that household. Another factor to consider would be single individuals who work long hours and prefer ordering put as opposed to cooking work. All these factors combined will help us determine if Domino’s should start a business in Farmington.
Other variables that are considered are my substitutes which are Subway, Burger King and Chopsticks. These variables are for those who are health conscious, or are looking for a drive through option or even a local dining experience. These are the other variables that are present in Farmington, not to mention the competitor Papa Johns.
The dependent variable is the number of pizzas sold in the area. Using a regression model we will input the dependent variable; value of pizzas sold, along with the independent variables; population and, median household income.
Analysis
With the average income in Farmington being higher, 79,044, than the income for the overall state, 55,117. The percentage of
References: 1. Farmington, Utah. 2012. Retrieved from http://www.city-data.com/city/Farmington-Utah.html 2. Census bureau releases 2010 census demographic profiles for Alabama, Colorado, Delaware, Hawaii, Kansas, Missouri, Nebraska, Nevada, North Carolina, Pennsylvania, Utah, Washington and Wyoming. (2011, May 19). Retrieved from http://www.census.gov/newsroom/releases/archives/2010_census/cb11-cn139.html