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Marketing Communication Paper on Mcdonald's : Integrating the Market Identifying Customer Needs

TABLE OF CONTENTS                                                                                                                         PAGES Introduction                                                                                             1 Discussion                                                                                             2-6 Evaluation of Strategic Choices                                                          7-9 Recommendations / Conclusion                                                       10-12      INTRODUCTION                                                          McDonalds is one of the best-known brands worldwide as McDonald's continually aims to build its brand by listening to its customers and identifies the various stages in the marketing process. The expansion strategy of McDonalds is integrating the market identifying customer needs and requirements and meeting these needs in a better way than competitors. In this way a company creates loyal customers. McDonald's has the power to expand its market as the number of target customers is increasing and always growing with positive buying decisions of such products as McDonald's establishes a prominent position in the minds of customers around the globe. International expansion is constantly transforming into a priority for organizations of every magnitude and the strategy to improve functions beyond domestic territories is not without problems players who have successfully entered foreign markets. Expanding internationally is a strategy that can help reduce these competitive problems by widening the probable sets of consumers, organizations also widen their profitable sources. Globalization can enhance a company's long-term survival as well (2001). Companies that expand into international markets lessen their dependence on a single country's economy (1998). There is no particular international expansion policy that is excellent at all types of settings, organizations that enhance excellent strategies tend to implement the following excellent practices. DISCUSSION In discussion, the skills in marketing communication is a crucial factor for McDonalds international expansion most to the Asian countries in a way  is that provides the most effective results. For example, TV advertising makes people aware of a food item and press advertising provides more detail as supported by in store promotions to get people to try the product and a collectable promotional device to encourage them to keep buying the item. A thorough understanding of what the brand represents is the key to a consistent message as the more McDonald's knows about the people it is serving the more it is able to communicate messages which appeal to them. In terms of market entry and development, the fact that McDonalds restaurants in the UK are a wholly owned subsidiary of the McDonalds Corporation in order to control quality, (1986) McDonalds in the UK initially developed the market through joint ventures with suppliers and through opening its own outlets and only when quality and reputation were established, did it begin to grant local franchises to expand in the international market and internationally, McDonalds is as big as some countries and is growing at a phenomenal rate. (1986) The strategy of the fast food giant is to serve customers where they live, shop and play. McDonalds's international strategy is to focus on high-profile CBD locations in new markets that it penetrates. (1986) The business is doing well and in many cases exceeds initial expectations in terms of turnover and profitability. McDonalds has no plans to diversify its range of restaurants being the most recognized brand in the world has its advantages as the group's marketing strategy is to leverage the name internationally for its worth. (1986) McDonalds obtains much of its required funding from multinational and local banks. The corporate policy is to finance themselves in the currency in which they sell their hamburgers whenever possible helping franchisees obtain funding. McDonalds' largest markets and the market is growing rapidly and still protects itself by monitoring of its international markets and hedging where appropriate in financing market entries strategies is one challenge through identifying market opportunities, packaging, price points and distribution channels. (2002) McDonalds has adapt menu selections to local tastes and import nearly its goods, until it can build supply chains locally. (Cavusgil, 2002, pp. 1-6) Some companies find that selling single-serving sizes works well in countries with low per-capita incomes. As Faced with increasingly intense competition in the United States, McDonald's Corp. (MCD) is increasingly relying on its international operations for the majority of its profits and the bulk of its new-store openings. McDonald's, which reaped nearly 60 percent of its overall operating income outside the United States in 1996, has restaurants in 103 countries. McDonald's, the international market, where it has more than 9,000 restaurants, represents an open field compared with the United States and after establishing a presence in many international markets including a foothold in places like India, where it sells lamb and vegetarian sandwiches, and China - McDonald's has taken the lead from its global competition. ( 1996) The process of penetrating and developing an international market is a difficult one, which McDonalds may identify as an Achilles’ heel in their global capabilities. In fundamental terms, entering a new country-market is like a start-up situation, with no sales, no marketing infrastructure in place and little or no knowledge of the market. Despite this, McDonalds Corporation usually treats the situation as if it were an extension of their business, a source of incremental revenues for existing products and services. The company can pursue such new business opportunity with a focus on minimizing risk and investment advocated for genuine start-up situations. (1999) Next, from a marketing perspective, as McDonalds may possibly break the founding principle of marketing that they should start by analyzing the market and only then, decide on its offer in terms of products, services and marketing programs and see international markets as opportunities to increase sales of existing products and that McDonalds can better adopt a sales push rather than a market-driven approach. The company enter new country-markets through the indirect channel of a local independent distributor in few other multinationals will not know their costs as well as their operating profitability in the markets and it is a fact that McDonalds are also altering the way they enter and penetrate new international markets, the mixed results as remain a challenging phase of internationalization. (1999)     In situations in which McDonalds strategy is adopted and rapid expansion of the business is a priority, they are highly suitable and the extent to be underutilized and it is clear market entry strategy are interrelated as expansion ways can run counter in entering the market with essential experience in the demonstration of emerging markets. (1986) Since, McDonald’s cannot export its product to all markets of countries, it can choose among different modes of operation in each market, some of which involve a higher degree of commitment of resources than others. In particular, it can open a subsidiary that franchises directly or enter into a joint venture with a local partner as well as establish a master franchising arrangement whereby the master franchisee owns and operates the outlets in his territory or finds franchisees to do the same. While the level of investment that McDonald’s commits to these markets differs across these different governance modes as McDonald’s exerts significant control over the number of outlets and the growth in the number of outlets in each market. Thus,  internationalization theory implies that familiarity will be the driving factor in determining where McDonald’s will expand abroad, it is useful to discuss further the factors that economic theory instead suggests might enter into a firm’s decision to expand abroad. McDonald’s may not fully internalize the cost of expansion in a master franchise context, such a contract usually stipulates a development schedule that states the number of outlets to be opened at different points in time, McDonald’s can still control the expansion path in such markets. (1986) Moreover, McDonalds potentially internalizes the cost of rapid development in master franchise contexts as much as they do under joint venture or even direct franchising (1987) In that sense, McDonald’s can still control the expansion path in such markets. Moreover, as tight development schedules impose higher costs on the master franchisee, they will not be willing to pay as much for a contract that requires them to expand very rapidly relative to one where they can expand more slowly. In conclusion, the notion that McDonald’s expanded abroad because it had saturated its home market. Instead, consistent with traditional profit maximization arguments for a firm with market power that faces numerous market opportunities and limited resources that it allocated resources to achieve growth across many highly desirable markets as it enters those markets with the most promising culture positively related to a country’s market potential, there are factors that affect entry and expansion differently. Therefore, it is worthwhile considering how service chains expand abroad and going beyond just entry to gain further insights in the process and hurdles involved in international market expansion respectively (1999). RECOMMENDATIONS McDonalds should not adhere to some mismatch between expectations and situational requirements stems from a failure to follow in international operations the marketing strategy process that is probably established in the core domestic business as the company have direct participation in the market and through a controlled marketing subsidiary having ample control over strategic marketing and its success to think thoroughly about how the business will develop over several years. While it is true that distinctive characteristics of an international marketing situation demand a different approach to marketing as it is not a reason for McDonalds standards in marketing management to be relaxed. In strengthening international expansion strategy of McDonalds market it is crucial to examine some unique international marketing challenges and discuss phases of the process of market entry and development, including the following: (1995) Ø  The objectives of market entry, which will have implications for the strategy and organization adopted Ø  The choice of market entry mode like McDonalds form of marketing organization through which the company participates in the market. Particular attention will be paid to the low-intensity modes of entry as favored in market entry situations (1997) Ø  The marketing entry strategy, with a particular focus on the lessons learned from the strategies of other established multinationals in emerging markets and framework for evolution of international marketing strategy The distribution unit in the country-market as a wholly-owned subsidiary, has to manage a strategy for growth and be judged on organizational criteria including feasibility, level of desired risk, supportability and control issues with the implementation of preexisting marketing strategies such as communication platforms and target customer selection. (1995) Indeed, it is usually impossible to separate the process of market development from the process of organizational development. It is possible to identify commonalities across companies in this process of internationalization and so to describe the usual evolution of international marketing strategy. (2001) The framework has to begin by recognizing that different objectives for market entry may produce quite different outcomes in terms of entry mode and marketing strategy. McDonalds enter international markets in following standard market entry and development strategy because of its increasing commitment pattern of market penetration, in which market entry is via independent partner to a directly controlled subsidiary of building a business in the country-market as quickly as possible but nevertheless with a degree of patience produced by the initial desire to minimize risk and by the need to learn about the country and market from a low base of knowledge. (2001) The market entry mode decision relevant for McDonalds should consider serving an international market through export agents is attractive in that it offers both low financial risk and access to substantial local operating knowledge. It is particularly suitable for the company to acquire better experience adopting international operating functions as the level of control is likely to be quite high, given that internationalization has occurred in the context of a preexisting inter-organizational relationship and establish a service operation for the customer’s local operations (2001) One drawback of franchising is the difficulty of adapting the franchised asset or brand to local market tastes even experienced corporations as McDonalds which have managed to thrive on trade-off and taken several decades and some false starts to get to this point of advanced practice. Moreover, licensing is a common method of international market entry for McDonalds with a distinctive asset, which is a key differentiating element in their marketing offer. ( 2004) Thus, licensing is a practice not restricted to international markets licensing its products to manufacturers and marketers while it focuses its own efforts on its core competencies of food production and distribution and offers an effective way of entering foreign markets because it can offer low-intensity mode of market participation and adaptation of product to local markets. CONCLUSION The fundamental reason of McDonalds for entering a new market has to be potential demand but it is common to observe factors driving investment and performance measurement decisions as it will change the calculus of the market entry mode decision. Thus, internationalization can help the company achieve greater economies of scale as the company may seek to exploit a distinctive and differentiating asset with adaptation to local markets, which would undermine scale economies from replication of the winning model (2003). McDonalds must retain some control, so it may enter markets with relatively high-intensity modes as either in franchising or licensing business models suited for the rapid replication of businesses through expansion of units as centered on protected assets as expansion operations will consist of a patchwork of country-market operations that are pursuing different objectives at anytime. It is better that McDonalds would adopt different entry modes for different markets and have a template that is followed in every markets as starts with market entry and a distribution channel respectively. However, since McDonalds will have involvement in elements of the marketing plan, including how much to spend on marketing, distribution arrangements and service standards, it should be noted that effective control over marketing operations is impossible without timely and accurate market information of market participation, involving investments in local executives, distribution and marketing programs. (2001)                   REFERENCES Anderson, Erin and Hubert Gatignon. 1986. “Modes of Foreign Entry: A Transaction Cost Analysis and Propositions.” Journal of International Business Studies (Fall 1986) 1-26.   Arnold, D, 2003. The Mirage of Global Markets: How Globalizing Companies Can Succeed as Markets Localize. FT Press; 1st edition   Barkema, Harry G., John H. J. Bell, and Johannes M. Pennings. 1996. “Foreign Entry, Cultural Barriers, and Learning.” Strategic Management Journal 17: 151-166.   Berry, S., “Estimation of a Model of Entry,” Econometrica (60), July 1992, 889-918.   Bresnahan, T. and P. Reiss 1987. “Analyzing Foreign Market Entry Strategies: Extending the Internationalization Approach.” Journal of International Business Studies 29: (3) 539-561.   Burton, F, 1999. International Business Organization: Subsidiary Management, Entry Strategies and Emerging Markets. Palgrave Macmillan   Camerer, C. and D. Lovallo. 1999. Overconfidence and Excess Entry: An Experimental Approach, American Economic Review, 89(1): 306-318.   Cavusgil, S, 2002. Doing Business in Emerging Markets: Entry and Negotiation Strategies. Sage Publications, Inc; 1st edition DeMark, T, 1997. New Market Timing Techniques: Innovative Studies in Market Rhythm & Price Exhaustion. Wiley; 1st edition   Geroski, Paul. 1995. “What do we know about entry.” International Journal of Industrial Organization, 13: 421-440.   Gielens, K. and M. Dekimpe. 2001. Do International Entry Decisions of Retail Chains Matter in the Long Run? International Journal of Research in Marketing, 18: 235-259.   Hooke, J, 2001. Emerging Markets: A Practical Guide for Corporations, Lenders, and Investors. Wiley; 1st edition     Li, T, 2001. Reviving Traditions in Research on International Market Entry, Volume 14 (Advances in International Marketing). JAI Press   Pereiro, L, 2002. Valuation of Companies in Emerging Markets. Wiley; 1st edition   Root, F, 1998. Entry Strategies for International Markets. Jossey-Bass; Rep Sub edition

Marketing Communication Paper on Mcdonald's : Integrating the Market Identifying Customer Needs

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Statistics for Managers

Master of Business Administration in Management STAT 500 Statistics for Managers     1.      Applying Six Sigma total quality management technique learned in the course to your workplace, identify a product or service whose quality needs to be monitored and controlled. (20 %) a) Set up control chart(s) for the product or service studied. b) On the basis of your results, indicate whether the process is in control. c) What is your recommended policy if the process is in control or NOT in control?   Answers: From the data gathered in my work place, the high voltage output of a power supply is specified as 350 ± 5 V dc at 20 milliamps (mA). Subgroups of four power supply units are drawn from the process and inspected approximately every half-hour. The data from 25 subgroups are show in the following table along with the average and range for each subgroup. DC-voltage output at 20 mA Subgroup Samples Calculations number a b c d TOTAL MEAN RANGE 1 348.5 350.2 348.3 350.3 1397.30 349.325 2 2 351.3 351.2 347.1 349.7 1399.30 349.83 4.2 3 348.5 350.5 348.5 349 1396.50 349.13 2 4 351.4 350.4 348.6 353.2 1403.60 350.90 4.6 5 349.4 348 349.6 351.1 1398.10 349.53 3.1 6 351.1 348.1 349.2 350.1 1398.50 349.63 3 7 348.3 349.9 350.7 348.5 1397.40 349.35 2.4 8 349.9 349.1 349 349.6 1397.60 349.40 0.9 9 349.2 348.7 348.8 350.3 1397.00 349.25 1.6 10 349.2 351.6 351.9 349.2 1401.90 350.48 2.7 11 350.1 350.5 351.2 347.9 1399.70 349.93 3.3 12 350.4 350.8 350.3 352.6 1404.10 351.03 2.3 13 347.7 349.6 348.6 349.3 1395.20 348.80 1.9 14 349 351.1 350.2 348 1398.30 349.58 3.1 15 350.7 349.3 349.3 350.2 1399.50 349.88 1.4 16 350 351.8 352.3 349.8 1403.90 350.98 2.5 17 350.1 349.8 349.6 349.2 1398.70 349.68 0.9 18 351.1 350.6 346.9 349.8 1398.40 349.60 4.2 19 351.4 349.3 349.7 349.6 1400.00 350.00 2.1 20 348.8 349.6 351.3 349.2 1398.90 349.73 2.1 21 349.4 350.2 350.2 351.8 1401.60 350.40 2.4 22 351.7 351.6 349.9 347.1 1400.30 350.08 4.6 23 350.4 349 349.2 349.6 1398.20 349.55 1.4 24 349.4 348.7 350.3 348.8 1397.20 349.30 1.6 25 349.6 349.1 349.6 351.2 1399.50 349.88 2.1             349.81 3.7   SPC: X – bar chart SPC: R chart   From the given information, the computer Mean is 282.45      with Std. Dev. of1.5927. Assuming that the distribution of voltage output is approximately normal, the proportion of the units are expected to meet specifications of 347.25 and 352.75 V to be in control.             To reach a 347.25 proportion of units, specifications must range from 345, 344, 349.1 and 350.9. To reach 352.75 however, specifications must be: 366, 345, 350.9 and 349.1. However, the charts indicate that none of the proportion of the units tested actually met these specifications which mean that distribution is normal.  SPC charts were developed by industrial quality control engineers to ensure the consistent delivery of quality products. Specifically, SPC charts are used to detect systematic changes in manufacturing processes through the identification of unusual product samples (for example, a sample of a part that is distinctly larger or smaller than other samples of this part). When unusual product samples are detected, attempts are made to discover their cause in the production process (for example, an improperly calibrated machine). Finally, this causal information is used to improve the production process (for example, recalibrate the machine) (Doty, 1996; Pitt, 1994; Wheeler & Chambers, 1992). In an SSD chart time is plotted on the horizontal axis, and the outcome variable is plotted on the vertical axis. This provides a running record of outcome variability. This same chart is known in the SPC literature as a "run chart." SPC charts are constructed by adding three elements to a run chart, which provides a more objective basis for the visual analysis of SSD data (Pfadt & Wheeler, 1995). A central value (for example, mean outcome) is computed and plotted as a solid line; this is referred to as the center line (the CL). Upper and lower control limits corresponding to plus and minus three standard deviations from this midpoint are computed and plotted as dashed lines parallel to the CL; these are referred to as the upper control limit (UCL) and the lower control limit (LCL), respectively.             There are a number of SSD situations in which it is important to identify nonnormative events and to monitor the stability of a process (for example, Pfadt et al., 1992; Pfadt & Wheeler, 1995). First, in prevention programs the occurrence of undesirable nonnormative outcomes (for example, excessive weight loss or gain) may signal the need to modify the prevention process. Indeed, the prevention of undesirable outcomes is one of the main goals of SPC. Second, in testing intervention effects nonnormative outcomes that occur when an intervention is implemented may signal an intervention effect. Third, the identification of a nonnormative outcome after successful implementation of an intervention may signal relapse and a need for "booster shots." Fourth, the identification of nonnormative outcomes can stimulate a search for the cause of such outcomes, which then can be incorporated into the process (for example, an increase in caregiver satisfaction associated with increased social support). Fifth, in observation-only designs it is necessary to determine if some nonnormative outcome occurs (for example, postpartum depression), which then may require intervention. Finally, in comparing data across phases, and in deciding when to change phases, it is important to determine if a stable and predictable pattern of data exists within a given phase.   References: Cox, M.E., & ORme, J.G. (2001). Analyzing Single-Subject Design Data Using Statistical Process Control Charts. Social Work Research. Vol25, No.2, p. 115.   Doty, L. A. (1996). Statistical process control (2nd ed.). New York: Industrial Press.   Pfadt, A., Cohen, I. L., Sudhalter, V., Romanczyk, R. G., & Wheeler, D. J. (1992). Applying statistical process control to clinical data: An illustration. Journal of Applied Behavior Analysis. Vol.25, pp. 551-560.   Pfadt, A., & Wheeler, D. J. (1995). Using statistical process control to make data-based clinical decisions. Journal of Applied Behavior Analysis. Vol.28, pp. 349-370.   Pitt, H. (1994). SPC for the rest of us: A personal path to statistical process control. Reading, MA: Addison Wesley.   Wheeler, D. J., & Chambers, D. S. (1992). Understanding statistical process control (2nd ed.). Knoxville, TN: SPC Press.   2. The PGGW has conducted a statistical analysis of 1,000 long-distance telephone calls made by its customers indicates that the length of these calls is normally distributed with a mean of 240 seconds and standard deviation of 40 seconds. (10 %)             a)         What percentage of these calls lasted less than 180 seconds? Answer:  or 1.5 to the left                         Since the area from the mean up to 180s is z=1.5 or 0.4432 then the probability less than 180s is 0.5 - 0.4432 = 6.68%.             b)         What is the probability that a particular call lasted between 180 and 300 seconds? Answers:             The area between 180s and 300s is given by:                                                                          or 1.5 to the left                                         or 1.5 to the right             Then the area is 0.4432 + 0.4432 = 0.8864 or 88.64%               c)         What is the probability that a particular call lasted for 30 minutes? Answer:                         There is an almost zero (0) probability that a particular call lasted for 30 minutes.               d)        What is the length of a particular call if only 1% of the calls are shorter? Answer: 3. The Tiger Rock Tunnel management knows that vehicles arrive at the rate of 50 per minute during the 6:00-7:00 P.M. rush hour. If a vehicle has just arrived, (5 %)               a)         What is the probability that the next auto arrives within 3 seconds? Answer: Since the probability of the next auto arrives within 1 second is 83.33%.  Then the probability of the next auto arrives within 3 seconds is 2.49% b)         What is the probability that the next auto arrives within 1 second? Answer: Then the probability is 83.33/1s = 83.33   4. The manager of Coca Coca wants to estimate the actual amount of soft drink contained in 1-liter bottles. The company has a specification requirement that the standard deviation of the amount of soft drink is equal to 0.02 liter. A random sample of 50 bottles is selected, and the sample mean amount of soft drink per 1-litre bottle is 0.995 liter. (10 %) a)     Set up a 99% confidence interval, estimate the true population mean amount of soft drink included in a 1-liter bottle. Answer: To determine the 99% confidence interval estimate of the mean amount of soft drink included in a 1-liter bottle, we have to use the formula of maximum error of estimate i.e.   Using the given data we have,   = 0.00728   where n= 50, σ= 0.02 and zα/2= z0.005= 2.575               Thus, the 99% confidence interval estimate of the population mean net weight of the tea bags produced by the sampled machine is 0.00728. b)     On the basis of your results, do you think the manager has a right to complain to the production manager? Why? Answer: No.  Since the computed possible error at 99% confidence interval is 0.00728 then it is still allowed to have a mean value of 0.995 liter. Actually 0.995 liter is still in the allowed range i.e.  1- 0.00728 < x < 1+0.00728. c)          Does the population amount of soft drink per bottle have to be normally distributed? Explain. Answer: Yes, it should be normally distributed since the skewness and kurtosis of distribution affects the central tendency and dispersion of data.   5) A survey is planned to determine the mean annual family medical expenses of employees of a large company. The management of the company wishes to be 95% confident that the sample mean is correct to within +/- $50 of the true population mean annual family medical expenses. A pilot study indicates that the standard deviation can be estimated as $400. (5 %)     a)         How large a sample size is necessary? Answer: samples   b)         If management wants to be correct to within +/- $25, what sample size is necessary? Answer:  samples 6) The quality control manager at a lightbulb factory needs to determine whether the mean life of a large shipment of lightbulbs is equal to the specified value of 375 hours. The process standard deviation is known to be 100 hours. A random sample of 64 lightbulbs indicates a sample mean life of 350 hours. (15 %)     a)         State the null and alternative hypotheses. Answer: b)   At the 0.05 significance level, is there evidence that the mean life is different from 375 hours? Answer: There is no significant evidence that the mean life is different from 375 hours. c)          Set up a 95% confidence interval, estimate the population mean life of the lightbulbs. Answer: Critical Region:    z< -1.645 and z> 1.645 where Where = 350, n = 64 and hence   d)         What is the relationship between hypothesis testing and confidence interval estimation? Answer:                         In confidence interval estimation, it involves the computation of bounds for which it is reasonable that the parameter in question is in that bound.  From the results and in general, for every test of hypothesis there is an equivalent statement about whether the hypothesized parameter value is included in a confidence interval.   7) A large mail-order house believes that there is an association between the weight of the mail it receives and the number of orders to be filled. It would like to investigate the relationship in order to predict the number of orders based on the weight of the mail. From an operational perspective, knowledge of the number of orders will help in the planning of the order-fulfillment process. A sample of 25 mails shipments is selected within a range of 200 to 700 pounds. The results are as follows: (20 %)                 Weight of Orders Weight of Orders Weight of Orders   Mail (lbs) (in $000) Mail (lbs) (in $000) Mail (lbs) (in $000)   216 6.1 384 10.6 528 16.2   283 9.1 404 12.5 501 15.8   237 7.2 426 12.9 628 19   203 7.5 482 14.5 677 19.4   259 6.9 432 13.6 602 19.1   374 11.5 409 12.8 630 18   342 10.3 553 16.5 652 20.2   301 9.5 572 17.1 　 　   365 9.2 506 15 　 　 a)          Assuming a linear relationship, use the least-squares method to find the regression coefficients, the vertical intercept and the slope. Answer: Weight of Mails = 5.55 + 32.76 Orders b)         Interpret the meaning of the vertical intercept and the slope. Answer: From the given linear regression equation i.e. Weigth of Mails = 5.55 + 32.76 Orders, we can see that there is a positive relationship between the variables.  In accordance to the vertical intercept and the slope, the changes are in positive direction.  Meaning to say, if the Weigth of Mails increases, there is also an increase in orders or vice versa.  However, if the order is zero, it is still expected the weight of mail is at least 5.55. c)          Predict the average number of orders when the weight of the mail is 500 pounds. Answer: Weight of Mails = 5.55 + 32.76 Orders           500 = 5.55 + 32.76 Order        Order = (500+5.55)/32.76                            Order = 15.43   d)         Is your prediction in ( c ) reliable? Explain Answer:                         From the given behavior of data and revealed by their correlation coefficient i.e. r = 0.98643916874012, the computed prediction is reliable.   8) Develop a model to predict the assessed value using the size of the houses and the age of the houses from the following table: (15 %)               House Value Size (sq ft) Age   1 844000 2000 3.42   2 774000 1710 11.5   3 757000 1450 8.33   4 859000 1760 0   5 791000 1930 7.42   6 704000 1200 32   7 758000 1550 16   8 859000 1930 2   9 785000 1590 1.75   10 792000 1500 2.75   11 867000 1900 0   12 793000 1390 0   13 745000 1540 12.58   14 838000 1890 2.75   15 768000 1590 7.17             a)         State the multiple regression equation. Value = 637751.235966945 + 107.251829803543Size -2842.54348013854Age             b)         Find the intercept and slopes in this equation. The intercept is 637751.235966945 and the slopes with respect to value are 107.251829803543 for size and -2842.54348013854 for age.             c)         Assess the value of a house that has a size of 1,750 sq ft and is 10 years old. Value[t] =  637751.235966945 + 107.251829803543(1750) -2842.54348013854 (10) Value = 797016.5033

Statistics for Managers

Master of Business Administration in Management STAT 500 Statistics for Managers 1. Applying Six Sigma total qualit...