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Statistic Multiple Regression Model. Explain how to further optimize the model

Bob wanted to build a multiple regression model based on advertising expenditures and price index. based on the selection of all normal values, he obtained the following:

1) Multiple R - 0.738
2) R-Square - 0.546

By using lagged values, he 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 they further optimize this model.

Solution Summary

Bob wanted to build a multiple regression model based on advertising expenditures and price index. The solution explains how using different models.

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