Business Principles and Decision Making

Running head: BUSINESS PRINCIPLES AND DECISION MAKING
Business Principles and Decision Making
Name of the Student
Name of the University
Course ID

1BUSINESS PRINCIPLES AND DECISION MAKING
Table of Contents
Problem A........................................................................................................................................2
Question 1....................................................................................................................................2
Problem B........................................................................................................................................3
Question 1....................................................................................................................................3
Question 2....................................................................................................................................4
Problem C........................................................................................................................................5
Question 1....................................................................................................................................5
Reference list...................................................................................................................................7

2BUSINESS PRINCIPLES AND DECISION MAKING
Problem A
Question 1
Schmeckt Gut is willing to introduce its energy bar to the Atolia market. Before
introducing energy bar to the new market, it is interesting for the company to determine factor
affecting demand of energy bar. The factors considered for estimating the demand for energy
bars include income, tariff rate and number of stores where energy bars are offered. In order to
evaluate the impact of each of these factor on energy bar demand, the following demand
equation is to be estimated.
Demand=α + ( β∗average income ) + ( γ∗tariff rate ) +(δ∗number of stores)
α: Intercept
β: coefficient for average income
γ: coefficient of tariff rate
γ: coefficient of number of stores
A regression analysis has been conducted using the survey data on Atolia market. Result
of the estimated regression is given below.