Evaluation And Grading Of Your Final Project

Evaluation/Grading of Your Final Project

The final project involves analyzing a given dataset and regression output to determine the best city for opening a second location, supported by statistical analysis without performing additional calculations. You will write an executive summary explaining your choice, justify it based on significance of predictors and descriptive statistics, and submit it via Turnitin with an originality report below 20%. The project accounts for 100 points, divided into sections including a cover page, proper grammar, identification of significant predictors, analysis of descriptive statistics, and justified city recommendations based on analyzed data. No outside sources are to be used; only the provided data and output should inform your analysis.

Paper For Above instruction

Choosing the optimal city for expanding a business requires a comprehensive analysis of various economic and demographic factors. For the purpose of this project, I selected New York City as the baseline and analyzed data from multiple cities to determine the most suitable locations for a second branch. I focused on significant predictors of cost of living, including rent, public transportation costs, bread, milk, wine, and coffee, as these variables directly impact operating expenses and customer affordability. The analysis hinges on interpreting the regression output to identify predictors significantly associated with cost of living, alongside descriptive statistics such as means, medians, quartiles, minima, and maxima, to understand how different cities compare.

In the regression analysis, the significant predictors at a 5% significance level included rent and the cost of a loaf of bread. Rent showed a negative coefficient, indicating that as rent increases, the cost of living index tends to be higher; similarly, bread prices serve as an essential indicator of basic living costs. These predictors make intuitive sense for a business considering a location, as higher rent and food costs would directly impact operational expenses and pricing strategies. The regression output revealed that rent in city centers had a coefficient of approximately -0.65, signifying a statistically significant relationship (p

Descriptive statistics of these significant predictors reveal key insights. The average rent in surveyed cities was approximately $2,463 with a median of about $2,354. Notably, New York’s rent was markedly higher—approximately $5,877—placing it well above the mean and median, indicating a significantly more expensive rent market. The loaf of bread showed a mean price of around $1.47, with a median of $1.37. Cities such as Warsaw and Athens featured below-median bread prices, with Athens at $0.80 and Warsaw at $0.69. Conversely, cities like Tokyo and Brussels had higher bread costs, around $6.82 and $4.17 respectively. Considering these statistics helps identify which cities are more affordable overall, especially when factoring in rent and basic commodities.

Based on this analysis, I recommend considering Chicago and Berlin for expansion. Chicago's rent, at approximately $2,050, is below the median, and bread costs around $1.51, close to the median, making it a cost-effective choice. Berlin has a rent of about $1,695 and bread costs of roughly $1.51, which are both below New York's figures, indicating lower operational costs. The regression results support these choices, as both cities exhibit significantly lower rent and bread prices—key predictors of overall cost—compared to New York.

Furthermore, other factors such as public transportation costs, which average around $78, and the beverage and food prices in these cities support their suitability for expansion. Berlin’s lower rent and food prices likely translate into lower expenses, aiding profitability. Chicago also offers competitive costs, coupled with strategic geographic advantages. These insights derived strictly from the regression and descriptive statistics reinforce the recommendation for these locations.

In conclusion, statistical analysis of key predictors and descriptive summaries strongly influence my recommendations. Both Chicago and Berlin demonstrate lower costs in critical variables influencing the cost of living and operational expenses. Data-driven decisions like these, rooted exclusively in analyzed data, are essential for strategic business expansion, ensuring that costs are manageable and profit margins are optimized. This analytical approach exemplifies how regression outputs and descriptive statistics can be employed to make informed, justifiable decisions for business growth in different urban environments.

References

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• Statista. (2023). Cost of living indexes by city. https://www.statista.com
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