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Problem 1: A large consumer products company wants to measure the effectiveness of different types of advertising media in the promotion of its products. A multiple regression model was created using two types of advertising: television (x1) and newspaper (x2). The multiple regression equation is: y' = 10,000 + 10x1 + 20x2. Predict the average sales for a city in which television advertising is 20,000 and newspaper advertising is 37,500.
a) 960,000
b) 900,000
c) 860,000
d) 810,000
e) 760,000
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