Word File Edit View Insert Format Tools Table Window Help oSave OFF Draw A B C Design Layout Exam-1-Computational-Spring2023 - Read-Only - Saved to my Mac References Mailings Review View Tell me save a copy of this document, click Duplicate. Topics: Interpret and evaluate the forecast models (40 pts) (regression). Forecast Accuracy (20 pts) Problem 3 Mark Price, the new productions manager for Speakers Company, needs to find out which variable most affects the demand for their 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. An extensive marketing project collected data over the past 12 years (year one is from 12 years ago). A subset of the data is below. Year Unit Sales (thousands) Price ($)/Unit Advertising ($000) 1 440 270 1200 2 740 240 565 3 940 222 205 4 1,340 215 295 5 1,190 220 575 6 1,240 205 115 7 940 230 650 8 1,140 212 285 9 1,020 225 185 10 1,274 216 585 11 965 232 825 12 840 250 1050 Answer the following questions based on your results. a. Perform a regression analysis based on these data in MS Excel. (10 points) b. Which variable, price or advertising, 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 Company based on the regression results if the price was $285 per unit and the amount spent on advertising (in thousands) was $900. (10 points) e. Use the simple nave approach and multiple regression equation (based on the regression results above) to forecast periods 2-12; which of these two methods has the greater accuracy if MAD and MSE are used? (20 points) 57 words English (United States) S Focus 1 FEB 16 N E Comment W A P