Find the best model for predicting Y based on X1 and X2. Y is the amount...
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Find the best model for predicting Y based on X1 and X2. Y 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 advertising. Consider as predictors all possible linear and quadratic terms (X1, X12, X2, X2, and XIX2). Consider possible transformations of Y. Include all appropriate diagnostics. When you have found your "best" model, predict a new Y when X1 = 20 and X2 = $1,900, giving a 95% prediction interval. The data set, shown below, appears in "Profits.xlsx". X1 X2 Y x1 x2 Y 1 $1,928 $16,624 2 $1,366 $17,082 3 $1,402 $16,486 4 $1,325 $14,435 5 $1,561 $17,922 6 $1,557 $18,156 7 $1,242 $18,290 14 $1,091 $23,548 15 $2,769 16 $19,492 $1,914 $19,252 8 $2,195 $15,765 9 $2,251 $17,020 10 $2,196 $18,270 11 $1,720 $21,057 17 $2,074 $19,186 18 $1,482 $21,604 19 $2,562 $18,329 20 $1,834 $21,809 21 $2,787 $19,153 22 $2,975 $20,773 23 $2,131 $23,009 24 $1,861 $23,667 12 $1,564 $19,003 25 $1,522 $26,220 13 $2,542 $17,622 Find the best model for predicting Y based on X1 and X2. Y 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 advertising. Consider as predictors all possible linear and quadratic terms (X1, X12, X2, X2, and XIX2). Consider possible transformations of Y. Include all appropriate diagnostics. When you have found your "best" model, predict a new Y when X1 = 20 and X2 = $1,900, giving a 95% prediction interval. The data set, shown below, appears in "Profits.xlsx". X1 X2 Y x1 x2 Y 1 $1,928 $16,624 2 $1,366 $17,082 3 $1,402 $16,486 4 $1,325 $14,435 5 $1,561 $17,922 6 $1,557 $18,156 7 $1,242 $18,290 14 $1,091 $23,548 15 $2,769 16 $19,492 $1,914 $19,252 8 $2,195 $15,765 9 $2,251 $17,020 10 $2,196 $18,270 11 $1,720 $21,057 17 $2,074 $19,186 18 $1,482 $21,604 19 $2,562 $18,329 20 $1,834 $21,809 21 $2,787 $19,153 22 $2,975 $20,773 23 $2,131 $23,009 24 $1,861 $23,667 12 $1,564 $19,003 25 $1,522 $26,220 13 $2,542 $17,622
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