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3) Let's think about how we might use causal forecasting in other applications. You are the...

3) Let's think about how we might use causal forecasting in other applications. You are the manager of Starbucks in South Florida. Other than price, identify 2 other potential independent variables that affect the demand for Starbuck's products, and then justify your answer briefly! a) independent variable 1: Justification: b) independent variable 2: Justification:

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Answer #1

(a)

Independent variable 1: Quality of Startbuck's products.

Justification: As the quality improves,the demand will increase. As the quality deteriorates, demand will be small.

(b)

Independent variable 2: Advertisement of Starbuck's products

Justification: As the adversement is more in media, the demand will increase due to publicity.

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