Quantitative Analysis Research Paper Example | Topics and Well Written Essays - 750 words - 1

Quantitative Analysis - Research Paper Example of taste and preferences, time of the year, and economic changes among other factors and an understanding of occurrence of such seasonal factors and their effects on equilibrium price is necessary and is recommended. Times series analysis allows for identification of effects of trend and seasonality, that can then be separated in forecasting optimal price and is therefore necessary for effective planning and goal setting. Forecasted seasonality and trend informs on expected changes in optimal prices that can be used to retain customers and even attract new customers for a competitive market share. The analysis, based on an organization’s data or that of the industry’s average and the following equation, can forecast daily or weekly prices for unit commodities that the restaurant could sell. Comparative analysis of cost and revenues is another recommended quantitative best practice for the business. Two approaches inform profit maximization and their understanding and use in the business will ensure optimal profitability. The difference between total cost and total revenue defines obtained profits and can be used to define profitability (Korrapati, 2014). Understanding the maximum level profit that an entity can achieve is more important for efficient resource utilization and this identifies the concept of marginal returns. Profit is maximized when marginal cost equals marginal revenues. Data analysis on difference between unit cost of a product and its unit price is therefore necessary for understanding the point of equality. This, however, relies on other practices such as optimal pricing that could use time series and cost accounting into determination of unit cost. The following mathematical equation expresses to optimization point. The mathematical approach can also inform decisions on optimal prices given cost and production capacity. A restaurant has such capacity limitation to space and number of seats in the restaurant and with a known optimal number