Statistical Report

1. Purpose This assignment will help you learn how to apply statistical methods when analyzing operational data, evaluate current marketing strategies’ performance, and recommend actionable business decisions. This opportunity will build critical thinking and problem-solving skills within the context of data analysis and interpretation. In addition, you’ll gain a first-hand understanding of how data analytics supports decision-making and adds value to an organization.Scenario: Pasta’s R Us, Inc. is a fast-casual restaurant chain specializing in noodle-based dishes, soups, and salads. Since its inception, the business development team has favored opening new restaurants in areas (within a 3-mile radius) that satisfy the following demographic conditions:

   • Median age between 25 – 45 years old
   • Household median income above the national average
   • At least 15% college-educated adult population

   Last year, the marketing department rolled out a Loyalty Card strategy to increase sales. Under this program, customers present their Loyalty Card when paying for their orders and receive free food after making ten purchases.
   The company has collected data from its 74 restaurants to track important variables such as average sales per customer, year-on-year sales growth, sales per sqft, Loyalty Card usage as a percentage of sales, etc. A key metric of financial performance in the restaurant industry is annual sales per sqft. For example, if a 1200 sqft restaurant recorded $2 million in sales last year, it sold $2,000,000/1200 = $1,667 per sqft.
   Executive management wants to know whether they can improve their current expansion criteria. In addition, they want to evaluate the effectiveness of the Loyalty Card marketing strategy and identify feasible, actionable opportunities for improvement. As a member of the analytics department, you are responsible for conducting a thorough statistical analysis of the company’s available database to answer executive management’s questions.
   Review your Week 1 Pasta’s R Us.xlsx with Instructor’s feedback
   Report: Use the APA formatted Week 2 Signature Assignment Statistical Report.docx (below) as it is APA formatted.
   Write about a 750-word statistical report that includes the following sections:·Section 1: Scope and descriptive statistics·Section 2: Analysis·Section 3: Recommendations and Implementation
   Section 1 – Scope and descriptive statistics·State the report’s objective.·Discuss the nature of the current database. What variables were analyzed?·Summarize your descriptive statistics findings from Excel. Use a table and insert appropriate graphs.
   Section 2 – Analysis Use Excel, Insert/Scatter plots with a Trendline that displays the regression equation and R2 for each of the following pairs of variables. Include x- and y-axis labels:·Bach Deg% versus Sales/Sqft·Med Income versus Sales/Sqft·Med Age versus Sales/Sqft·Loyalty Card% versus Sales Growth%·In your report, include the scatter plots. For each scatter plot, designate the type of relationship observed (increasing/positive, decreasing/negative, or no relationship) and determine what you can conclude from these relationships.

2. Section 3: Recommendations and implementation

   • Based on your findings above, assess which expansion criteria seem to be more effective. Could any expansion criterion be changed or eliminated? If so, which one and why?
   • Based on your findings above, does it appear as if the Loyalty Card has a positive correlation with sales growth? Would you recommend changing this marketing strategy?
   • Based on your previous findings, recommend a marketing positioning that targets a specific demographic. (Hint: Are younger people patronizing the restaurants more than older people?)
   • Indicate what information should be collected to track and evaluate the effectiveness of your recommendations. How can this data be collected? (Hint: Would you use survey/samples or census?)
   • Cite references to support your assignment.
   • Format your citations according to APA guidelines.