Making Decisions Based on Demand and Forecasting Research Paper - 1

Making Decisions Based on Demand and Forecasting - Research Paper Example The year 2000 census established that whites form the majority of the population followed by the African Americans in Chesapeake, Virginia. It is an extremely economically vibrant city with a lot of business opportunities. The City’s economic status means that the per capita earnings of the population are fairly good and promotes the service and commodity industries because the population has more purchasing power (United States Bureau of the Statistics, 2001). With only a small percentage of the entire population living below the poverty line and the majority of those above this line being between the ages of 15 and 35 years, it makes the city an unusually favorable place for business opportunities. The population of Chesapeake as of the year 2010 was 222,209 people with the majority of this population earning between 60,000 -100,000 thousand US Dollars annually (United States Bureau of the Census, 2006). The age that is associated with pizza or is pizza tolerant also happens to be the majority age group of between 10 and 40 years. The cost of living is high, which means that the prices here are relatively higher as compared to other cities. This is brought about by the economic stability of this Region: The rental prices are relatively cheap and the city’s security is conducive for businesses and their clients. The use of demand and forecasting, in making business decisions, is a wise tool to choose because it relies on facts on the ground to make predictions about the suitability of an event in the future or the present (United States Bureau of Economics, 2006). Estimated regression is a mathematical principle used in this process, and it uses this formula;  = a + bx with y and x being the two variables under consideration. They determine the suitability of the future conditions or circumstances that will prevail in relation to the business. The variables x is used to predict the outcome, which is represented by y. The coefficient of