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You have developed the following multiple linear regression model for Crusty Pizza Company profits.3 + 3.4*X1 + 5.2*X2 + 2.1*X3, where:
You have developed the following multiple linear regression model for Crusty Pizza Company profits. Y :2.3 + 3.4*X1 + 5.2*X2 + 2.1*X3, where:
Y is in hundreds
X1 is advertising expenditures in hundreds
X2 is student population in thousands, and
X3 is 1 if they deliver and 0 otherwise.
Crusty Pizza is considering a new location with:
Advertising budget of $1,750
Student population of 22,500
location will not offer delivery
What is the expected profit for this store?
A. $178
B. $17,880
c. $1,780
D. $19,216