Green Green Month Sales Episodes Month Sales Eplsodes 1 34,175 3 13 55,732 26,004 7 2 28,366 2 14 4 3 41,819 4 15 49,188 5 27,666 31,299 4 1 16 40,005 38,912 31,777 30,367 34,566 29,078 45,876 48,556 51,022 2 1 17 2 6. 37,456 52,444 18 1 7 5 19 46,712 37,222 44,981 8 20 1 21 1 10 22 3 11 40,006 23 4 12 47,321 24 6. 4n32 224
In order to take advantage of the burgeoning public interest in sustainability, Klorax has developed
a nonsynthetic line of natural cleaning products called GreenClean. One of the first sustainable
products Klorax introduced was a natural cold-water detergent. The company has now
gathered several years’ worth of sales data for this product in order to develop various forecast
models. The company’s marketing department believes that sales increase when there are several
major environmental (i.e., “green”) episodes in the national media, such as a government
energy report, an increase in gasoline or energy prices, an oil spill, a pollution episode, a company
getting positive press for undertaking a major green project, etc. Therefore, the marketing
department wants to develop a linear regression forecasting model that relates the number of
green episodes reported monthly in the national media to monthly sales of the detergent. The
marketing department had several staff members go through various media sources for the past
2 years and count the number of major national green episodes reported on, which with monthly
sales, is shown in the following table: Develop a linear regression model and determine the sales forecast if three green episodes are
reported in the media next month. Discuss the value and usefulness of this type of relational
forecast for Klorax.
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