Answer the five questions and show work.

Problem 3 Mark Price, the new productions manager for Speakers and Company, which has been in business for over 35 years. needs to find out which variable most affects the demand for their line of stereo speakers. He is uncertain whether the product's unit price 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 over the past 12 vears (vear one is data from 12 years ago) and was reduced to the following data. a. Perform a regression analysis in MS Excel based on this data. (10 points) b. Which type of advertising. TV or newspaper, has a higher effect on sales, and how do you know? (10 points) c. What percentage of the variation is explained by the regression line? (10 points) d. 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. (10 points) e. Use the simple naive approach and multiple regression equation (based on the regression results above) to forecast periods 2-12. State which method (naive or multiple regression) is more accurate using MAD, MAPE, and MSE. (20 points)