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Deb's Pizza Palace Analysis and Memo

Deb is the owner of Deb's Pizza Palace - an establishment that prides itself on preparing healthy but delicious pizzas sold by the slice. She is currently selling pizzas in a small shop on Monroe Ave. in Corvallis, but is considering an expansion of her current business to other campuses and needs help making this decision. She's collected some data and asks you to help her analyze and present it to the Small Business Administration loan officer who will either reject her proposal or provide funding for the proposed expansion.

Each of the following worksheets has a data set and one or more questions. Analyze the data, answer the questions, and report your conclusions and recommendations in a 1-2 page business memo for Deb.

The memo should be supported with your charts, tables, graphs, and anything else necessary to explain your results. And, please keep the memo as jargon-free as possible since Deb doesn't remember much from her college stats courses. After all, that's why she hired you.

What is the coefficient of correlation? Is it significant at .01? How do you know?

How much of the variation in calories can be explained by the number of fat grams per slice?

Build a predictive model for number of calories using fat grams. If a pizza has 15 grams of fat, how many calories should it have, using your model?

Can you think of any other correlations that might help Deb in her business planning? Are there any variables that seem to be missing?


Solution Preview

What is the coefficient of correlation? Is it significant at .01? How do you know?

Make a scatterplot of fat grama vs calories. Go to the "Chart" menu and add a trend line.

The coefficient of correlation is r. Find this using the =PEARSON() function in Excel.

r = 0.918545584

To find out if it is significant, you have to look at a critical value table for r ...

Solution Summary

This solution provides calculations and interpretation of results in an attached Excel file.