In: Statistics and Probability
Use computer software packages, such as Minitab or Excel, to solve this problem.
The owner of Showtime Movie Theaters, Inc., used multiple regression analysis to predict gross revenue (y) as a function of television advertising (x1) and newspaper advertising (x2). Values of y, x1, and x2 are expressed in thousands of dollars.
|Weekly Gross Revenue ($1000s)||Televison Advertising ($1000s)||Newspaper Advertising ($1000s)|
The estimated regression equation was
a. What is the estimated gross revenue for a week where $3.5 thousand is spent on television (x1 = 3.5) and $1.8 thousand is spent on newspaper advertising (x2 = 1.8) (to 3 decimals)?
b. Provide a 95% prediction interval for next week's revenue, assuming that the advertising expenditures will be allocated as in part (a) (to 2 decimals).
( ___ , ___ )