Cutting-edge Computer Company (3C) serves a large number of businesses in the Great Lakes region. 3C sells supplies and replacements and performs service on all computers sold through seven sales offices. Recently, business has been increasing, and because many items are stocked, close inventory control is necessary to assure customers of efficient service. A forecasting method is needed to estimate requirements several months in advance so that adequate replenishment quantities can be purchased. An example of the sales growth experienced during the last 50 months is the growth in demand for item EP-37, a laser printer cartridge.
a. Develop a trend projection with regression. Forecast demand for month 51.
b. A consultant to 3C's management suggested that new office building leases would be a good leading indicator for company sales. The consultant quoted a recent university study finding that new office building leases precede office equipment and supply sales by 3 months.
According to the study findings, leases in month 1 would affect sales in month 4, leases in month 2 would affect sales in month 5, and so on. Develop a linear regression module to forecast sales, with leases as the independent variable. Forecast sales for month 51.
c. Which of the two models provides better forecasts? Explain.

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MONTH EP-37 SALES LEASES MONTH EP-37SALES LEASES 32 261296 281 32 28 1267 31 53 01370 309 2 132 22711992 143 4180 51300 323 893148 343 7212 7432 1893 37 8 254 9 397 120 34 1716360 10 385 11335 1603 370 11 47281 3 12 7 1263717 3 1798 399 1873 409 1923 410 2028 413 17 743180422049439 18 722 197 43 2084 454 19 735 203 44 2083 441 838 223452121470 21 1057 247 46 2072 469 22 930242472262 490 23 1085 234 48 2371 496 254 49 2309 509 2 522 476 13838 699 14539 545 16040 837 1964 24 10902 25 121827150