Circular Intuitionistic Fuzzy Linear Regression Analysis: A Novel Approach for Modeling Uncertainty in Marketing Expenses and Revenues

Circular Intuitionistic Fuzzy Sets (C-IFSs) represent an extension of Intuitionistic Fuzzy Sets (IFSs), wherein each element is depicted as a circle in the IFS interpretation triangle rather than a point. Regression analysis serves as a predictive tool, commonly employed to quantify the causal relationship between two variables. We propose an extension of the traditional linear least squares approach by incorporating C-IFSs and the concepts of index matrices (IMs) to manage and analyze extensive IF datasets, referred to as CIFIM-LRA. Additionally, we introduce a criterion for assessing the adequacy of the CIFIM-LRA model. The study explores the relationship between monthly marketing expenses and revenues for Mladost Ltd in 2022, the leading manufacturer of pipe installation faucets in Bulgaria, using both the conventional and proposed CIFIM-LRA approaches. Decision-makers are presented with pessimistic, optimistic, and average scenarios to consider before making a final decision. The uniqueness of the article lies in the development of the CIFIM-LRA approach and its application to analyze the marketing costs and revenues of Mladost Ltd. in 2022.