Student Tech is a computer retailer that sells computers, printers and software in a convenient location near Algoma University @ Brampton. The sales manager of Student Tech had historical data on sales of computers and printers at this location for the past ten (10) years, as follows:

Year	Computers Sold	Printers Sold
1	1045	326
2	1610	510
3	860	296
4	1211	478
5	975	305
6	1117	506
7	1066	612
8	1310	560
9	1517	590
10	1246	676

1. In Excel, develop a linear trend line demand forecast for printers in year 11.
2. Develop a linear regression model relating printer sales demand to computer sales demand to forecast printer sales demand in year 11, if 1300 computers are sold.
3. Compare your demand forecasts developed in (a) and (b) above and indicate which one appears to be accurate.
4. Develop an exponential smoothing model with alpha = .30 for the data above to forecast printer demand in year 11 and compare its accuracy to the lineal trend line forecast developed above in part (a).

Question 8 continues on page 7

Q8. (15points) PART TWO OF TWO PARTS

5. Student Tech believes its printer sales are also related to the average price of its printers. It has the following historical data on hand for average printer prices over the past ten (10) years as follows:

Year	$ Average Printer Price
1	475
2	490
3	520
4	420
5	410
6	370
7	350
8	300
9	280
10	250

There are three parts to question 8 (e) PART TWO

1. Using Excel, develop the multiple regression equation for these data.
2. What is the coefficient of determination for this regression equation?
3. Determine the demand forecast for printer sales, based on computer sales of 1500 units and an average printer price of $300.