Question ##1 Using regression analysis, a real estate broker has found the following formula to set up Listing prices (LP) for townhouse properties in a specific neighbourhood: LP = 750 * (the habitable area in sq.ft.) + 30000 * (the sum of number of bedrooms plus number of bathrooms) 15000 * (the age of the building). This result came with an R2 of 0.92. What Listing price will this broker set up for a townhouse in that same neighbourhood with an area of 1600 sq.ft, featuring 4 bedrooms and 3.5 bathrooms, in a building built in 2003? What does R2 of 0.92 indicate to the broker?

Question ##2 In a motel with no seasonality, the occupancy rates over the past 11 weeks have been: 60%, 55%, 52%, 61%, 63%, 49%, 64%, 58%, 57%, 54%, and 61%. The owner-manager complains to you that their guessing comes up with large differences from the reality of the market. You offer to use a formal approach and decide to try a 3-week moving average and a 3-week weighted moving average with weights of (1-for the oldest period, 2, and 3-for the most recent period). Based on MAD, which is the better forecasting model?