Starbucks Project

Coffee is BIG Business Name_____________________

Period ____________________
A cup of coffee isnt just a cup of coffee anymore. Now it has become a social event. Seattle-
based Starbucks has grown and grown. Lets take a look at the growth since the companys
inception and try to predict where they are going.
n !"#!$ Starbucks %offee opened its first location in &ike &lace 'arket ( Seattles
legendary open-air farmers market. )y !"*#$ the number of Starbucks stores had
grown to !#
Assessment:
+ou should be able to demonstrate your knowledge of e,ponential functions as your evaluate the
increase of Starbucks locations from the year !"*# to -.!.. /he grading of this assessment will
be based on two components0 the completion of this activity packet and the /-nteractive
document that contains your data$ graphic representations$ e,ponential and logistic regressions.
+ou will be assessed on the following criteria0
1ata collection0 correctly complete two data tables from Starbucks timeline0 20%
2raphic representations0 - scatter plots 3 !"*# ( !""#$ !"*# ( -.!. 4 including the use of
appropriate intervals$ labels for each a,is and title for the graph0 30%
Analysis of e,ponential model including
!. 1oes the model look e,ponential5
-. nterpreting the meaning of a$ the initial population$ from the e,ponential e6uation
including the units.
7. nterpreting the meaning of b$ the multiplier$ from the e,ponential e6uation.
8. %alculation the e,ponential regression using the /-nteractive software.
9. 'aking predictions for the years !""* ( -.!. using the e,ponential regression.
50%
Part A !"#onentia$ In%esti&ation
:ead about the history of the company including the %ompany ;verview /ime Line. Starting with !"*#$ record
the year and the number of stores through the end of -.!. in the table below.
Let t < . be !"*#. /herefore$ !"** is t < !$ etc.
1.
'ear (ime )t* Number of
+ocations
,-./ 0
,-.. ,
-. %reate a scatter plot of the number of locations versus the years since !"*# on /-nteractive.
)= S>:= /; LA)=L +;>: A?S AN1 >S= A&&:;&:A/= N/=:@ALS.
7. Aow well would an e,ponential model fit this data5 =,plain. BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
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BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
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Part B 0indin& an !"#onentia$ 1ode$
>sing /-nteractive software$ create a scatter plot so that you can determine an appropriate model to fit this data
and curve fit your data using the e6uation for an e,ponential function.
Set an appropriate CN1;C for the data.
4. State the e,ponential e6uation0 BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
9. nterpret the meaning of a in your function$ y < ab
"
including the units that a represents.
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BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
D. nterpret the meaning of b in your function$ y < ab
"
. nclude in your response how this relates
to the rate of growth.
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#. >sing the /-nteractive Stat %alculation /ool on the tool bar$ calculate the e,ponential regression for your data.
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8. Use the exponential regression to predict the number of Starbucks locations in each of
the following years.
Years Time
t!
"redicted
#umber of
$ocations
%ctual
#umber of
$ocations
1&&8 11
1&&& 1'
'(((
'((1
'(('
'(()
'((4
". Aow well does 2our function predict the number of Starbucks locations from !""* to -..8
compared to the actua$ number of locations from the Starbucks %ompany /ime Line5 =,plain.
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BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
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!.. Chat real-world feature of business growth may not have been accounted for in the e,ponential
growth model5 =,plain.
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************************************************************************************
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Part C +o&istic 0unction
Ce need to model the data set with an e6uation that takes into account the fact that a business growth eventually
levels out or reaches a carrying capacity. Ce will use the Starbucks data to find the logistic regression from /-
nteractive to model this data.
!!. Crite the logistic regression0 BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
!-. >se the logistic model you just found to predict the total number of Starbucks locations for !""* through
-..8. %omplete the following table.
'ears
Predicted Number
of +ocations
)$o&istic mode$*
,--.
,---
2000
200,
2002
2003
2003
!7. Aow do your predictions compare with the actual number of locations for the year !""* to -..8 that you
found in E*.
!8. &redict how many locations you think there will be in the year -.-..
!9. Chich model$ e,ponential or logistic$ did you use to make this prediction5 =,plain your reasoning.