The results of the demand forecast of Shawarma is presented to you for analysis. As a
new business manager of the company, you are required to provide an explanation for
this forecast given your knowledge of business economics so that the company would
know what to concentrate on and how to plan for the future.
Y= 1.1 - 2.0P + 0.5S + 0.8X + 1.5T
(3.2) (9.3) (1.2) (2.6)
R 2 is 0.78; Probability value (F-statistic) is 0.02; t-statistics are the values in the
bracket above
Whereby Y is the Quantity demand for Sharwama
P is the price of Sharwamaa (in riyal)
S is the demand for Soft drink (in number of quantity)
X is the income of people in the market surveyed (in 1,000 riyal).
T is the taste of the consumers for Sharwama in that area