Business Case on Pronto Pizza

Introduction:
Pronto Pizza is a family owned pizza restaurant in Vinemont, a small town of
20,000 people in upstate New York. Antonio Scapelli started the business 30 years ago as
Antonio’s Restaurant with a few thousand dollars. Antonio, his wife, and their children,
most of who are now grown, operate the business.

Many years ago Antonio’s son Tony Jr, graduated from NYU with an
undergraduate degree in Business administration. This Pronto Pizza was one of earliest
pizza restaurant which offered home delivery. Fortunately, Tony had the foresight of this
business decision a few years ago. At the same time Tony changed the name of this
business from Antonio’s to Pronto Pizza. Nearly 90% of the Pronto’s current business is
derived from Pizza delivery service.

Analysis:
Solution 1

Coefficient of co-relation ( r ) 0.9359

The sign of coefficient of corelation (r) is positive. Since r is close to 1it means
that there is a strong positive relationship.
Yes this is the sign we would expect to be associated with this coefficient.

The percentage of the variation in the driving time to deliver a pizza explained
by the number of miles for the trip is 87

87%

HO:P^2=O
H1:P^2=O
r^2 0.875825

Std. Err 0.029996988

t Statistics 31.198305
t- value 1.96
Decision t < -1.96 or t>1.96
Rule Reject Ho, Otherwise do not
Decision Reject Ho

Conclusion
There is a significant linear relationship between the two variables

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 Solution 2

Y(hat)=b0+b1(X)
Y(hat)=1.0282+1.7496(X)

Slope =1.7496

Slope tells us that average travel time will increase by 1.7496 for each additional
1 mile increase.

Solution 3

Y(hat)=b0+b1(X)
Y(hat)=1.0282+1.7496(5) 9.7762

Solution 4

Regression Analysis

Regression Statistics
Multiple R 0.93585519
R Square 0.875824936
Adjusted R
Square 0.875303192
Standard Error 0.669440371
Observations 240

ANOVA
Significance
df SS MS F F
Regression 1 752.287192 752.287192 1678.648897 8.5472E-110
Residual 238 106.6597976 0.44815041
Total 239 858.9469896

Standard
Coefficients Error t Stat P-value Lower 95% Upper 95%
Intercept 1.028150902 0.171817273 5.983978717 7.94694E-09 0.689674058 1.366627746
x (Distance) 1.749618857 0.042703504 40.97131798 8.5472E-110 1.665493744 1.833743969

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Confidence Interval Estimate

Data
X Value 5
Confidence Level 95%

Intermediate Calculations
Sample Size 240
Degrees of Freedom 238
t Value 1.969981
Sample Mean 3.894167
Sum of Squared Difference 245.7518
Standard Error of the Estimate 0.66944
h Statistic 0.009143
Average Predicted Y (YHat) 9.776245

For Average Predicted Y (YHat)

Interval Half Width 0.126099
Confidence Interval Lower
Limit 9.650146
Confidence Interval Upper
Limit 9.902344

For Individual Response Y

Interval Half Width 1.3248
Prediction Interval Lower Limit 8.451445
Prediction Interval Upper Limit 11.10105

Determination & Interpretation

We are 95% confident that the values fall between (9.650146-

9.902344) and the prediction intervals associated with the pizza
delivery that involved a five mile trip (8.451445 - 11.10105)

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SUMMARY
OUTPUT

Regression Statistics
Multiple R 0.93585519
R Square 0.875824936
Adjusted R
Square 0.875303192
Standard
Error 0.669440371
Observations 240

ANOVA
Significanc
df SS MS F eF
8.5472E-
Regression 1 752.287192 752.287192 1678.648897 110
Residual 238 106.6597976 0.44815041
Total 239 858.9469896

Standard Upper Lower Upper

Coefficients Error t Stat P-value Lower 95% 95% 99.0% 99.0%
Intercept 1.0282 0.1718 5.9840 0.0000 0.6897 1.3666 0.5820 1.4743
x (Distance) 1.7496 0.0427 40.9713 0.0000 1.6655 1.8337 1.6387 1.8605

Question # 5:

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The outliers are

Distance Travel time

6.4 12.55
6.4 12.58

From the scatter diagram we saw that these two sets of points are
the outliers.