I’m working on a Business question and need guidance to help me study.

The finance manager performed a regression analysis of the number of cars sold and interest rates using the sample of data above. Shown below is a portion of the regression output.

1.Are there factors other than the interest rate charged for cars sold that the finance manager should consider in predicting future car sales?

2.Is interest rate charged for a loan the most important factor to be considered in predicting future car sales? Explain your reasoning. The dealership’s vice-president of marketing has requested a sales forecast at the prevailing interest rate of 7%.

3.As a finance manager, what reasons would you convey to the vice-president in recommending this forecasting model?

4.Is the prediction of car sales at 7% a reflection of the current downturn in the economy? How might this impact the dealership’s business?

This e-mail message (including any attachments) is for the sole use of

the intended recipient(s) and may contain confidential and privileged

information. If the reader of this message is not the intended

recipient, you are hereby notified that any dissemination, distribution

or copying of this message (including any attachments) is strictly

prohibited.

If you have received this message in error, please contact
the sender by reply e-mail message and destroy all copies of the

original message (including attachments).