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Find the best model for predicting Y based on X1 and X2 is the amount of profit that a company makes in a month.
Find the best model for predicting Y based on X1 and X2 is the amount of profit that a company makes in a month. X1 is the number of months that the company has been in business. X2 is the amount spent on ad- vertising. Consider as predictors all possible linear and quadratic terms (X1, X1, X2, X2, and X1X2). Consid- er possible transformations of Y. Include all appropriate diagnostics. When you have found your "best" model, predict a new Y when X1 = 20 and X2 = $1,500, giving a 95% prediction interval. The data set, shown below, appears in "Profits.xlsx". X1 X2 1 $1,928 $12,577 2 $1,366 $12,720 3 $1,402 $13,244 Y X1 X2 Y 4 $1,325 $13,741 5 $1,561 $14,157 14 $1,091 $18,078 15 $2,769 $15,982 16 $1,914 $17,433 17 $2,074 $17,421 18 $1,482 $18,696 6 $1,557 $14,575 19 $2,562 $16,978 7 $1,242 $15,170 20 $1,834 $18,566 8 $2,195 $14,990 21 $2,787 $16,854 9 $2,251 $15,230 10 $2,196 $15,530 22 $2,975 $16,580 23 $2,131 $18,615 11 $1,720 $16,258 24 $1,861 $19,421 12 $1,564 $16,758 25 $1,522 $20,396 13 $2,542 $12,577
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