Regression model and lagged values model

Reference no: EM1397062

A. Laura wanted to build a multiple regression model based on advertising expenditures and coffee times price index. Based on the selection of all normal values she obtained the following:

1) Multiple R = 0.738

2) R-square = 0.546

By using lagged values she came up with the following:

3) Multiple R = 0.755

4) R-square = 0.570

Explain the differences in using these different models. How could CoffeeTime further optimize this model?

Please include all tests using excel.

Reference no: EM1397062

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