D. C. Use multiple regression with price/unit and advertising as independent variables. a. Is this a good model substantively and statistically? Document your response. (2 Point) b. Forecast for periods 1-13 using multiple regression analysis. For period 13, use a price of $300 and advertising expenditures of $900 (in thousands). (1 Point) Which variable, price or advertising, has a larger effect on sales and how do you know. Document your work. (1 Point) d. Plot sales and the forecasted values on the same figure using Multiple Regression. Provide some commentary based on what you see. (1 Point) e. Calculate: bias, MAD, MSE, RMSE, MAPE, and track tracking signal. Also, plot the tracking signal and comment on what you see on the plot. (4 Points) Which model would you use and why? (1 Point) Year Sales/unit (Thousands) Price/Unit Advertising ($000) 280 600 700 215 835 211 1,100 1,300 210 1,400 5 1,150 215 1,200 1,200 200 1,300 225 900 1,100 207 1,100 220 700 1,234 900 925 700 400 1 2 3 4 900 900 6 7 8 9 10 11 12 980 211 227 800 245 690 D. C. Use multiple regression with price/unit and advertising as independent variables. a. Is this a good model substantively and statistically? Document your response. (2 Point) b. Forecast for periods 1-13 using multiple regression analysis. For period 13, use a price of $300 and advertising expenditures of $900 (in thousands). (1 Point) Which variable, price or advertising, has a larger effect on sales and how do you know. Document your work. (1 Point) d. Plot sales and the forecasted values on the same figure using Multiple Regression. Provide some commentary based on what you see. (1 Point) e. Calculate: bias, MAD, MSE, RMSE, MAPE, and track tracking signal. Also, plot the tracking signal and comment on what you see on the plot. (4 Points) Which model would you use and why? (1 Point) Year Sales/unit (Thousands) Price/Unit Advertising ($000) 280 600 700 215 835 211 1,100 1,300 210 1,400 5 1,150 215 1,200 1,200 200 1,300 225 900 1,100 207 1,100 220 700 1,234 900 925 700 400 1 2 3 4 900 900 6 7 8 9 10 11 12 980 211 227 800 245 690
