Joe has also collected the following data in Table 1.2. Joe remembered from Business School, that there is a technique called regression that could be used to forecast Sales. In fact, he thinks the regression technique most likely will lead to the best forecast of all the techniques he has applied. 1. Help Joe create a multiple regression model to predict Sales using Ads & # in the Sales Force. 2. Explain why the multiple regression model is or isnt a better forecasting model then the forecasting techniques used in the previous problem (HINT: include a discussion of the regression statistics). 3. Forecast Sales if Ads = 78 & # in the Sales Force = 127 & show your linear regression model as well as its use. Create dialogue to explain this result. (HINT: At a minimum you need to compare all the previous forecasts (e.g., Nave & Moving Average forecasts to the multiple regression model via an error measurement such as MAD

FOR NUMBER 2 - THE FORECASTING TECHNIQUES PROVIDED A 135.2 MAD FOR NAIVE A 145.08 FOR THE 2 YEAR AND 124 FOR THE 4 YEAR. Naive forecast was 424.14, 2 year was 372.87 and 4 year was 424.14

Table 1.2 Table 1.2