Reference no: EM131366484

Please answer the following questions below and include references with your responses.

1. You are the vice president of sales for TerraFirma, a company that manufactures outdoor sporting gear. You receive a report on your desk one morning that claims little or no relationship between the University of Michigan Consumer Sentiment Index (CSI) and outdoor sporting gear sales. The claim is based on a very low R2 of the simple regression model, using these two variables (CSI and sales). Discuss how you would (or should) react to this report and why. What clarifying questions might you ask?

2. Provide an example based on your professional experience of a situation in which using a multiple regression model or nonlinear regression model may have helped your organization make a better decision.

3. What types of business situations or problems might best lend themselves to multiple linear regression? What types may not? When do you anticipate using a multiple linear regression model in your postgraduate, professional experience? Explain.