Westar beverage - Statistics Project Example

WESTAR BEVERAGE 17 February WESTAR BEVERAGE Forecasting is a statistical application that relies on existing numeric datafor predicting trends. Regression analysis, as a statistical tool, provides a basis for establishing relationships among variables. Such relationships can then be used make predictions subject to some expected assumptions. This paper seeks to offer a basis for predicting beverage sales for Westar hotel. The paper will use regression analysis to establish a model for predicting sales of the hotel’s beverage sales (Freund, Wilson, and Sa, 2006).

The sets of data used in the analysis corresponds to the hotel’s monthly sales for both pub and nightclub, sales for the club, sales for the pub, total expenditure for the hotel, expenditure for the nightclub, expenditure for the pub, and room occupancy in the hotel. Using excel, regression analysis generates the following tables with coefficients.Regression StatisticsMultiple R1R Square1Adjusted R Square0.954545Standard Error3.65E-13Observations28ANOVA table dfSSMSFSignificance FRegression66E+081E+089E+320Residual223E-241.

33E-25Total286E+08   Table of coefficients CoefficientsStandard Errort StatP-valueLower 95%Upper 95%Lower 95.0%Upper 95.0%Intercept-4E-121E-12-4.18660.0004-6E-12-2E-12-0-2E-12X Variable 117E-171.35E+1601111X Variable 212E-175.54E+1601111X Variable 32.1E-169E-160.2249240.8241-2E-152E-15-02E-15X Variable 40065535#NUM!0000X Variable 5-1E-169E-16-0.129620.898-2E-152E-15-02E-15X Variable 63.2E-171E-160.2727370.7876-2E-163E-16-03E-16From the regression statistics, the high value of adjusted R square indicates that the regression model explains a high percentage of the considered data, more than 95 %.

The model can therefore be used to predict beverage sales. The lower significance value from the ANOVA table, 0 relative to 0.05, also indicates that there exist significant relationship between beverage sales and the other variables. Further, the table of coefficients confirms that significant relationship exists between beverage sales and sales for the pub and sales for the nightclub. The significant model for forecasting beverage sales is therefore given by,Sales = x + y, Where x is the sales for pub and y is the sales from nightclub.

The other variables are not significantly related to beverage sales.ConclusionThe hotel’s volume of sales equally depends on its two branches, pub, and club. Research into forecasting should therefore be diversified to investigate factors affecting sales in the two branches of the hotel. ReferenceFreund, R., Wilson, W., and Sa, P. (2006). Regression analysis: statistical modeling of a response variable. London, UK: Academic Press