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An electronics company is looking to develop a regression model to predict the number of units sold for a special running watch. Sales (units) Price

An electronics company is looking to develop a regression model to predict the number of units sold for a special running watch.


Sales (units)

Price ($)

Advertising ($)

500

100

50

480

120

40

485

110

45

510

103

55

490

108

40

488

109

30

496

106

45

a. Should this company use both price and promotion dollars, or just one of them only, to determine the sales? Perform data analysis and explain.
b. Use the model you determined (multiple regression) to predict sales if price is set at $125 and advertising is $55.
c. Then compare the forecast in (b) above with the forecast you would have made using each independent variable separately (alone).

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