Problem:

Provide me a 1.5 pages of discussion and answer each question in detail. Also Label each question with each question's answers. Make sure you pay close attention to detail on this discussion.

Developing a multiple regression model requires judgment, skill and often times several iterative steps. Even though automatic model building procedures (e.g., stepwise, best subsets) are helpful, we still need to evaluate the adequacy and suitability of the resulting multiple regression model in practice. What are some of the issues relevant to forecasting with multiple regression models? Just because a multiple regression model is statistically significant, does that mean it will do a good job forecasting? Because we are now dealing with a statistical model, we have the ability to develop different types of forecasts. What is the difference between a point forecast, a confidence interval forecast, and a prediction interval forecast? Can you give an example of each within the context of a specific scenario with which you are familiar? Which of the three do you think is most applicable in business forecasting?