Fine Dinner Gross Revenue Analysis: Statistical Inferences, Draw Conclusions (Coursework Sample)

Finer Diner Gross Revenue Analysis
Name:
Institutional
Q1.
Calculate Gross revenues
Gross revenues (Y) = 618.4 + 282.68 (Advertising Expenditures) + 95.43 (Number of Nights with Live Entertainment)
Y = Gross revenues (monthly)X1 = Advertising Expenditures (monthly)X2 = Number of Nights with a Band Present (monthly)
Currently, the restaurant spends $500 per month on advertising and has live entertainment fifteen nights per month. Calculate Gross revenues
Y = 618.4 + 282.68 ($500) + 95.43 (15) = $143,389.85.
From the calculated p=values (Advertising Expenditures = 0.00005 and Number of Nights with Live Entertainment = 0.35) it shows that advertising expenditures have significant difference in monthly gross revenues while the number of live entertainment does not affect the monthly gross revenues.
Q2.
Predict gross revenues if the restaurant raised monthly advertising expenditures by 15%, 25%, and 50%.a) 15% increase
(115/100) * 500 = $ 575
Y = 618.4 + 282.68 ($575) + 95.43 (15) = 618.4 +162,541 + 1,431.45 = $164, 590.85
b) 25% increase
(125/100) * 500 = $ 718.75
Y = 618.4 + 282.68 ($718.75) + 95.43 (15) = 618.4 + 203,176.25 + 1,431.45
= $205,226.1
c) 50% increase
(150/100) * 500 = $750
Y = 618.4 + 282.68 ($750) + 95.43 (15) = 618.4 + 212,010 + 1,431.45
=$ 214,059.85(Heiman, 2013).
Q3.
Predict gross revenues if the restaurant provided live entertainment 12 nights per month, 20 nights per month, and 24 nights per month.
a) 12 nights live entertainment
Gross revenues (Y) = 618.4 + 282.68 (Advertising Expenditures) + 95.43 (Number of Nights with Live Entertainment)
Y = 618.4 + 282.68 ($500) + 95.43 (12) = 618.4 + 141,340 + 1,145.16 = $143,103.56
b) 20 nights live entertainment
Y = 618.4 + 282.68 ($500) + 95.43 (20) = 618.4 + 141,340 + 1908.6 = $143,867
c) 24 nights live entertainment
Y = 618.4 + 282.68 ($500) + 95.43 (24) = 618.4 + 141,340 + 2,290.32= $144,248.72
Q4.
Identify goals of 15% increase in gross revenues for the next fiscal month, a 25% increase in monthly gross revenues for the current quarter, and a 50% increase in monthly gross revenues at the end of this fiscal year.
a) 15% increase in gross revenues for the next fiscal month. The goal would be to make sales up to $143,389.85 * (115/100) = $164, 898.3275. This means a target of extra sales amounting to $21,508.4775.
b) 25% increase in monthly gross revenues for the current quarter. The goal would be to make sales up to $143,389.85 * (125/100) = $179,237.3125. This means a target of extra sales amounting to $35,847.4625.
c) 50% increase in monthly gross revenues at the end of this fiscal year. The goal would be to make sales up to $143,389.85 * (150/100) = $215,084.775. This means a target of extra sales amounting to $71,694.925 (Kerns, 2010).
Q5.
Predict changes in advertising expenditures and how many nights live entertainment is offered that will lead to meeting the goals.
i) Achieving a target of $21,508.4775 extra sales will need advertising expenditures to be added $75 more and 3 more nights for live entertainment. This means $575 to be used for advertisement and 18 nights for live entertainment.