Premium Essay

Kraft Foods: Frozen Pizza

In: Business and Management

Submitted By itsscaitlinnn
Words 619
Pages 3
Final Project
RE: Kraft Foods: Frozen Pizza

I investigated the relationship between price and volume in 156 different weeks in the cities of Baltimore, Dallas, Chicago, and Denver. The data is significantly different for each city.

The city with the largest response is Chicago and the city with the lowest response is Dallas.

The most reliable cities, according to their regressions, are Chicago and Denver; they follow most closely to the linear model.

Below is a table used to show our data.

City | Coefficient | P-Value | Confidence Intervals | R-Squared | Baltimore | -34,955.599 | 6.76 E-25 | -40,529.092,-29,382.106 | 0.499 | Dallas | -33,527.186 | 9.62 E-13 | -42,037.218,-25,017.154 | 0.282 | Chicago | -331,151.768 | 4.25 E-49 | -361,059.875,-301,243.661 | 0.756 | Denver | -52,795.753 | 8.04 E-32 | -59,766.814,-45,824.692 | 0.592 |

The coefficient is a normalized measure of the price for pizzas. The p-value is the probability that the coefficient relates to the price and volume of pizzas. The confidence intervals indicate the reliability of the predicted data (volume of pizza). The r-squared shows the percentage of variation of volume of pizza for the predicted data.

In Baltimore, the normalized measure of the price of pizzas decreased in volume by 34,955. The regression analysis showed that, on average, the probability is 6.76 E-25 (almost 0) to equal the coefficient. I am 95% confident that the actual volume of pizza deceased between 40,529 and 29,382 for each additional dollar spent. We found that about 50% is the variation of volume for the predicted data. This is relatively average.

In Dallas, the normalized measure of the price of pizzas decreased in volume by 33,527. The regression analysis showed that, on average, the probability is 9.62 E-13 (almost 0) to equal the coefficient. I am 95% confident that the actual…...

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