"The demand for a product is a function of both the price of the product and the dollars spent on promotions by the company that produced it." Which of the following methods is appropriate to forecast demand for the product?
A)simple linear regression analysis
B)multiple linear regression analysis
C)multiplicative method
D)additive method

Question

Quizplus · Accepted Answer

Since the demand for the product is affected by both the price of the product and the dollars spent on promotions, a multiple linear regression analysis would be appropriate to forecast the demand for the product. This method allows for the consideration of multiple variables in predicting the outcome.

"The Demand for a Product Is a Function of Both