Branded Products, Inc., based in Oakland, California, is a leading producer and marketer of household laundry detergent and bleach products. About a year ago, Branded Products rolled out its new Super Detergent in 30 regional markets following its success in test markets. This isn't just a “me too” product in a commodity market. Branded Products' detergent contains Branded 2 bleach, a successful laundry product in its own right. At the time of the introduction, management wondered whether the company could successfully crack this market dominated by Procter & Gamble and other big players.
The following spreadsheet shows weekly demand data and regression model estimation results for Super Detergent in these 30 regional markets:
Regression Statistics
R Square ........... 90.4%
Standard Error ......... 34.97
Observations ........... 30

(Continue to next page.)

A. Interpret the coefficient estimate for each respective independent variable.
B. Characterize the overall explanatory power of this multiple regression model in light of R2 and the following plot of actual and estimated demand per week.

C. Use the regression model estimation results to forecast weekly demand in five new markets with the followingcharacteristics:

  • CreatedFebruary 13, 2015
  • Files Included
Post your question