# Quik Lube Case Study

686 Words3 Pages
Kwik Lube Case Study Compute the loss for Kwik Lube stations during the last two years using trend analysis. How accurate can results claim to be? With a -.01 bias and a negligible tracking symbol, the forecast analysis substantiates Dick Johnson’s assertion that the presence of competition cut directly into Kwik Lube’s profit. A trend analysis was conducted and projects sales in the amount of \$1,419,445 and \$1,530,445 for 2006 and 2007, respectively. Comparing the gross sales forecast to actual sales, this results in a loss of \$309,445 in 2006 and \$420,445 in 2007. [pic] Now, use the data in Table 1 and regression analysis, to compute the loss for Kwik Lube stations during the last two years. How accurate can results claim to be? |(untitled) Summary | |Measure |Value | |Error Measures | | |Bias (Mean Error) |0 | |MAD (Mean Absolute Deviation) |29611.49 | |MSE (Mean Squared Error) |1284291000 | |Standard Error (denom=n-2-0=6) |41381.01 | |MAPE (Mean Absolute Percent Error) |.03 | |Regression line | | |Dpndnt var, Y = 89527.02 | | |+ 2.78 * X1 | | |Statistics | | |Correlation coefficient |.99 | |Coefficient of determination (r^2) |.97 | Was it worth \$30,000 to perform the marketing research that obtained the data in Table 1? If you were trying to determine if the return on the investment of \$30,000 was worth the monetary loss alone, the answer is no. However, the information validates the statistical model based solely on the owner's franchise's data. This purchased data and