Essay - Research Methods for Managerial Decisions Part I Run the Research...

Research Methods for Managerial Decisions

***** I

Run the Research Methods for Managerial Decisions simulation and then answer the following questions, in short ***** *****mat:

*****.

Laura wanted to build a multiple regression model based on advertis*****g expenditures ***** coffee times price index. Based on the selection of all normal values she obtained ***** *****:

***** R = 0.738

R-square = 0.546

By using lagged values ***** came up with the following:

Multiple R = 0.755

R-square = 0.570

***** the differences in ***** these different *****s. How could CoffeeTime further optimize this model?

By having the lagged values included in the second multiple regression equation, more variation in ***** dependent variables are defined. Without using any ***** *****, only a small proportion of total predictability in the dependent variable is produced through ***** use ***** this statistical technique. Adding in lagged independent variables, most notably the ***** value of competitor's advertising spending will also increase the Multiple R and R-square values generated, as greater variability in the dependent variable will be explained. The steps that CoffeeTime can take to increase ***** robustness of this ***** ***** further optimize it are to include more independent ***** that specifically address the spending of competi*****rs, their pricing, and consumer demand.

A b.

Tourism is one consideration for C*****feeTime's future. A survey of 1,233 v*****itors to Mum*****ai last year revealed that 110 visited a small cafe during their visit. Laura claims ***** 10% of tourists will include a visit to a c*****fe. Use a 0.05 significance level to test her claim. Would it be wise for her to use that claim in trying to convince management to increase their advertising spending to travel agents? Explain.

Yes, ***** would, provided she uses a one-tailed Z-test at the.05 confidence level and chooses a sample size of 120. Further, the null ***** alternative hypo*****ses to either reject or accept the hypo*****sis that tourists do in fact have a statistically significant influence on CoffeeTimes' sales could be completed. The use of the z-test provides a comparison ***** sample means to ascertain the statistical significance of tourists having a significant financial impact on CoffeeTime ***** shop sales.

Part 2:

What additional strategy (***** ***** on a given str*****tegy) would you recommend to the key decision maker in the simulation ***** solve the challenge given? Prepare a 350-word memo to ***** simul*****tion's ***** decision maker advocating ********** recommendation.

***** are many ***** challenges involved in the development of forecasting models and the development of predictive analytics as they relate to the impact of both C*****feeTime's ***** competitor's advertising spending. The following are additional considerations in ***** development of more thorough ***** analytics and statistical forecast*****g models of the Indian market for C*****feeTimes' beverages ***** sandwiches:

*****dvertising spending increasing overall market growth or cannibalizing competitive sales? This is a major question ***** needs to be addressed through ***** econometric modeling, ***** looking at the aggregate impact of industry-wide spending on increasing ***** total market size ***** served coffee in key