Question: Computown is a large computer discount store than sells computers and ancillary equipment and software in the town where Tech University is located. Computown has collected historical data on computer sales, average printer price and printer sales for the past 10 years, as follows:

a) Develop a linear trend line forecast to forecast printer demand in year 11.

b) Develop a linear regression model relating printer sales to computer sales in order to forecast printer demand in year 11 if 1250 computers are sold.

c) Develop the multiple linear regression for this data (printers sold is the y or dependent variable, Personal computers sold and average printer price are the independent variables).

d) What is the coefficient of determination for the multiple regression equation?

e) Determine the forecast for printer sales, based upon personal computer sales of 1300 and an average printer price of $250.