Mark Price, the new productions manager for Speakers and Company, needs to find out which variable most affects the demand for their line of stereo speakers. He is uncertain whether the unit price of the product or the effects of increased marketing are the main drivers in sales and wants to use regression analysis to Figure out which factor drives more demand for its particular market. Pertinent information was collected by an extensive marketing project that lasted over the past 10 years and was reduced to the data that follow:

a. Perform a regression analysis based on these data using Excel. Answer the following questions based on your results.
b. Which variable, price or advertising, has a larger effect on sales and how do you know?
c. Predict average yearly speaker sales for Speakers and Company based on the regression results if the price was $ 300 per unit and the amount spent on advertising ( in thousands) was $900.

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SALESUNIT PRICE ADVERTISING YEAR (THOUSANDS UIT ($000) 400 700 900 1,300 1.150 1998 1999 600 835 1,100 1,400 290 2001 2002 211 210 215 2004 1200 1,100 990 1,234 925 800 1,300 900 1,100 700 900 700 690 900 220 211 227 245 2007