Patent ID: 7197473

Claim:
A method of calculating a base volume, the method comprising: obtaining an initial estimated base volume, wherein the initial estimated base volume is an estimated portion of an actual volume of sales; performing one or more iterations of a base-volume-estimation process that includes: performing a bias reduction for the estimated base volume; estimating a set of coefficients based on a regression equation involving the actual volume, the base volume, and at least one of a price reduction value representative of a price reduction and a promotion value representative of a sales promotion; calculating an error component associated with the set of coefficients; and calculating a new estimated base volume based on the thus calculated error component and the actual volume; and determining an optimal base volume estimate based on the one or more estimated base volumes calculated during respective one or more iterations of the base-volume-estimation process; wherein the estimating of the set of coefficients is based on the following expression for estimating coefficients α and β 0 through β k ; ln ⁡ ( AV BV ) - α + β 0 ⁢ PR + β 1 ⁢ Prom 1 + ⋯ ⁢ + β 2 ⁢ Prom 2 wherein AV is representative of the actual volume, BV is representative of the estimated base volume, PR is representative of the price reduction value, and P rom is representative of the promotion value; and storing the optimal base volume estimate.