Question number 1

A local pizzeria chain wants to forecast demand for their new gourmet pizza line. They're considering different methods to estimate demand and predict future sales.

Using the concepts covered this week, discuss the following:

1. Direct vs. Statistical Methods:
   • Explain the strengths and weaknesses of directly surveying customers about their willingness to pay for the new pizzas.
   • How can regression analysis be used as a statistical method to estimate demand based on historical data (e.g., past sales, price points)?
2. Functional Forms:
   • What is the difference between a linear and a non-linear demand function?
   • When might a linear function be appropriate, and why might a non-linear function be a better fit for certain products? (Consider potential trends or diminishing returns as purchase quantities increase)
3. Time Series and Forecasting:
   • How can past sales data and time series analysis help predict future demand for the pizzas?
   • What are some limitations of relying solely on historical data for forecasting?
4. Statistical Issues:
   • Discuss some challenges that can arise when using statistical methods to estimate demand.
   • How might factors like omitted variables or multicollinearity (correlation between independent variables) affect the accuracy of the forecast?

Question 2

In this forum activity assignment, you will delve into the critical aspects of project selection and initiation. Select one of the subtopics listed below to research and discuss. You are encouraged to utilize resources such as the Amberton University Online Library, Google Scholar, or any appropriate source to locate relevant case studies, articles, or videos.

Discussion Topics: (select one)

• Project Selection & Initiation:
  • Explore the criteria and processes used in project selection and the steps involved in project initiation, emphasizing how these contribute to project success.
• Project Selection Criteria and Methods:
  
  • Research and discuss different criteria and methods organizations use to select projects. Include an analysis of the advantages and disadvantages of each method.
• Strategic Alignment and Project Portfolio Management:
  
  • Examine how project selection aligns with organizational strategy and goals. Discuss the role of project portfolio management in ensuring strategic alignment.
• Feasibility Studies and Business Case Development:
  
  • Explore the importance of feasibility studies and the development of business cases in the project selection process. Discuss how these documents support decision-making.