Michael Jenkins Restaurant - Case Study Example

Name: Instructor: Class/Course: Date: DATA ANALYSIS REPORT Introduction As a business orientation pulls all the capital resources at disposal towards the motivation to invest, restaurant is one of the best businesses in the modern society. As Michael Jenkins aims are concerned, the most important factor is having a perfect knowledge about the market. The purpose of this report is to come up with reliable information on the likelihood to patronize Jenkins’s restaurant, average amount that can be spent in that restaurant per month, and an average price that can be paid by each customer. In this way, the feasibility analysis as well as the break- even analysis for the restaurant would be more reliable and accurate. It would also be important in determining the possibility of having adequate demand for the restaurant according to Jenkins’s plans. Objectives Main objectives of the project include, i. Determination of the average monthly income of most of the potential customers. ii. Determination of the population among different areas using post codes iii. Analyze the feasibility of the customer preferences and tastes iv. Come up with a reliable report about the markets demand, demographics and social lives. Research questions The following research questions guided the analysis and provided a clear focus for the study; i. How much are potential patrons willing to par for entrees? Is the $18 amount from the forecasting model correct? ii. Can Michael expect all patrons to spend an average of $200 a month on food? iii. Which post codes area(s) provide the best location for the restaurant? Does the likelihood of attending the new restaurant different between codes? iv. Does the expected average monthly spending different between potential patrons with different incomes? v. Should there be waterfront views, or will patrons only drive less than 30 minutes to the restaurant? vi. Would it be more important to patrons if the restaurant had unusual desserts, unusual entrees or both? vii. Which section of the newspaper should Michael select for advertising? Which section do most probable patrons like to read? viii. Is there a relationship between monthly spending and age, family size and gender? ix. Does the family size differ between probable or non probable patrons? x. Is there a relationship between marital status and probability of being a patron? Methodology The research design for this study used a descriptive and explorative technique of research which involved use of other statistical techniques of analysis like SPSS. This ensured a cross examination of the relevant information for the analysis, according to Cooper, & Schindler, P. (2008) of the feasibility of Michael Jenkins’s restaurant market. Key Hypotheses and Statistical Analysis The forecasts aim to investigate how much the potential patrons are willing to pay for the entrees. This hypothesis is aimed at answering whether the $18 amount from the forecasting model correct. The expectation of the 400 patrons of the average evening meal price is $18.84, and the sample standard deviation is $9.83. At 5% level of significance, let; H0: the $18 amount from the forecasting model is correct H1 : the $18 amount from the forecasting model is not correct Assume H0= µ Ý=µ= $18 δÝ= δ/root 400 ≈s/ root 400 =9.82784/ root 400 =0.491392 Z= (18.8353-18)/0.491392 =0.58828 P Read More