The Director of Marketing at Paper Mate Inc. is attempting to develop the most accurate forecast for the 2021 Back-to-School August sales for of Squishy Grip mechanical pencils. It is clear from the table below, that sales have increased from year-to-year, but it is also known that the number of competitors can have a great influence on sales. Fortunately, the number of competitors in 2021will remain the same as 2020.

To help determine the best forecast, the following table contains the past 3 years of August sales and the number of competitors in the marketplace.

YEAR	Sales In millions	# Competitors
August 2018	3	2
August 2019	4	4
August 2020	7	5

Use trend analysis and regression analysis (with Pearsons correlation) to determine the the most accurate forecast for the Sales in August 2021.

In addition, find the 80% and 90% confidence interval for the most accurate forecast of August 2021 sales.

Then submit a 2 Paragraph forecasting report to the Director of Marketing, Ms. Tweedy Bird summarizing your forecasting results.

Answer for Question Two

Trend Forecasting Analysis with MSE:

Regression Analysis with MSE:

Please provide evidence of your hand-written solution.

The most accurate forecast is:

Pearsons Correlation:

Please provide evidence of your hand-written solution.

Confidence Interval Analysis: