These are questions to consider when responding to the student post but not necessarily needed.
items you found to be compelling and enlightening. To help you with your discussion, please consider the following questions:
- Do you agree with your classmate’s decision? Why or why not?
- What additional questions do you have after reading the posting?
- What clarification do you need regarding the posting?
- Why do you feel your decision would make more sound financial and business sense?
Student paper down below:
It is almost time to complete the portfolio for Big D Incorporated to determine if it is feasible for the new retailer to expand its outdoor sporting goods company. There are some variables that may affect this process, therefore a path will be recommended to ensure that important aspects of the expanding the business are addressed. The Regression Model will be used to forecast monthly in the expansion of the new sporting goods market. This information will be based on the exercises that were completed in Units 1, 2, and 3.
There are several variables that can affect the targeted market. One is the individualâ€™s ability to purchase the sporting goods as stated in surveys. The second is whether the area selected to expand the business have obstacle that can prevent the business from being profitable and successful. Some common external factors that can hinder a business from expanding or becoming profitable are the economy, finance, infrastructure, weather condition, laws, customer base, and trends. Economy factors such as market instability that are based on politics and currency devaluation can affect group. Also, in finance interest rates, credit availability, and consumer loans can have an impact on the external factors of the business. Weather condition can also affect sales, a business that is placed in an area prone to storms more than likely will have less business due to increment weather. Infrastructure changes can have a negative or positive effect on the business. Also, state, local, and federal laws can have a direct impact if the products that are offered are outlawed or regulated. Market trends and customer base are the most important factors that can affect the new retailerâ€™s expansion of the sporting goods. The styles that the company chooses to offer should match the customers preference and be accessible through many ways for purchase such as online and in stores. (Ray, 2018)
The Regression Model is a statistical analysis used to estimate the relationship between Independent (X) and Dependent (Y) variables. This model can be used to forecast future business decisions. The Regression Analysis can be used to determine the linear correlation between the education level of an individual and his/her income levels. This analysis can be completed by using multiple choice questions to gather data. A scatter plot can be used to the education levels which corresponds the different (x) values and income corresponds the different (y) values. Also, the liner correlation coefficient can be computed to find the linear relationship. (M.U.S.E., 2018)
Forecasting is a very importing job for managers. There are two statistical methods used by managers to forecast, which are correlation and regression. Correlation permits an individual to determine how close two variables are related. The range of correlation coefficient value is -1.0 and +1.0. The negative and positive sign specifies whether there is a negative or positive correlation. A positive correlation exists when both values increase and decrease. A negative correlation exists when one variable increase, while the other decrease. Forecasting can help a business determine an estimate of future sales. In addition, regression is statistical method that allow an individual to build an equation to define the activities of two variables relationship. It can help an individual forecast and stimulate different outcomes. (M.U.S.E., 2018)
As the business analyst for Big D Incorporated, it is my mission to choose a path that will be both successful and profitable in expanding its sporting goods products with brand name running shoes. After comparing income and education levels in the Chicago area and nationally I have concluded that Chicago will be a profitable area to expand the new retailerâ€™s sporting goods market with brand name running shoes. There are 13.73% of the individuals in the Chicago area making over $200,000 plus per year compared to the national average of 2.37%. This is an indication that individuals in this area are more likely to have more spending power and the most disposable income than other areas. Also, the levels of education can have a huge impact on future sales. It was noticed that the higher individualâ€™s education level, he/she is six times likely to make a higher salary than individuals that have graduated from high school and enter job the market. (Strauss, 2017)