Question
In: Statistics and Probability
The owner of Showtime Movie Theaters, Inc., used multiple regression analysis to predict gross revenue ()...
The owner of Showtime Movie Theaters, Inc., used multiple regression analysis to predict gross revenue () as a function of television advertising () and newspaper advertising ().
| Weekly Gross Revenue (s) |
Televison Advertising (s) |
Newspaper Advertising (s) |
| 97 | 6 | 2.5 |
| 90 | 3 | 2 |
| 95 | 5 | 2.5 |
| 92 | 2.5 | 3.5 |
| 96 | 3 | 4.3 |
| 94 | 3.5 | 3.3 |
| 95 | 3.5 | 4.2 |
| 95 | 4 | 3.5 |
The estimated regression equation was .
The computer solution provided .
a. Compute (to 3 decimals).
Compute (to 3 decimals).
b. When television advertising was the only independent variable, and . Are the multiple regression analysis results preferable?
- Select your answer -No, because less variability is explained when both independent variables are usedYes, because greater variability is explained when both independent variables are usedItem 3
Solutions
Expert Solution
1) The estimated regression equation was
Gross revenue=79.7364+1.9434 TV Advertising+2.2029 News Advertising
R square value=95.10%,
2) When television advertising was the only independent variable, the regression equation becomes
Gross revenue=89.4686+1.2541 TV Advertising
R square value=41.95%% . Since the R square value is almost half the earlier, our conclusion is
Yes, because greater variability is explained when both independent variables are used
For any query in above, comment.
orchestra answered 1 year agoRelated Solutions
The owner of Showtime Movie Theaters, Inc., used multiple regression analysis to predict gross revenue (y)...
The owner of Showtime Movie Theaters,
Inc., used multiple regression analysis to predict gross revenue
(y) as a function of television advertising (x
1) and newspaper advertising (x2). The estimated regression
equation was
Weekly Gross Revenue ($1000s)
Televison Advertising ($1000s)
Newspaper Advertising ($1000s)
96
5
2.5
90
3
3
96
5
1.5
92
3.5
2.5
96
4
4.3
94
4.5
2.3
95
3.5
5.2
95
4
3.5
ŷ = 76.3 + 3.41 x 1 + 1.33 x
2
The computer...
The owner of Showtime Movie Theaters, Inc., would like to predict weekly gross revenue as a...
The owner of Showtime Movie Theaters, Inc., would like to
predict weekly gross revenue as a function of advertising
expenditures. Historical data for a sample of eight weeks follow
has been collected in the Microsoft Excel Online file below. Open
the spreadsheet and perform the required analysis to answer the
questions below.
Weekly Gross Revenue ($1000s)
Television Advertising ($1000s)
Newspaper Advertising($1000s)
97
6
1.5
91
2
2
96
5
1.5
93
2.5
2.5
95
4
3.3
94
3.5
2.3
95...
The owner of Showtime Movie Theaters, Inc., would like to predict weekly gross revenue as a...
The owner of Showtime Movie Theaters, Inc., would like to
predict weekly gross revenue as a function of advertising
expenditures. Historical data for a sample of eight weeks follow.
Weekly Gross Revenue ($1000s) Televison Advertising ($1000s)
Newspaper Advertising ($1000s) 97 5 1.5 90 2 3 96 4 2.5 92 2.5 2.5
95 3 3.3 95 3.5 2.3 95 2.5 4.2 95 3 3.5 Use = .01 to test the
hypotheses for the model y = 0 + 1 x 1...
The owner of Showtime Movie Theaters, Inc., would like to predict weekly gross revenue as a...
The owner of Showtime Movie Theaters, Inc., would like to
predict weekly gross revenue as a function of advertising
expenditures. Historical data for a sample of eight weeks
follow.
Weekly Gross Revenue ($1000s)
Televison Advertising ($1000s)
Newspaper Advertising ($1000s)
97
5
1.5
90
2
3
96
4
2.5
93
3.5
2.5
96
3
4.3
94
3.5
2.3
95
2.5
5.2
95
3
3.5
a. Use to test the hypotheses
and/or is not equal to zero
for the model , where
television advertising...
The owner of Showtime Movie Theaters, Inc., would like to predict weekly gross revenue as a...
The owner of Showtime Movie Theaters, Inc., would like to
predict weekly gross revenue as a function of advertising
expenditures. Historical data for a sample of eight weeks
follow.
Weekly
Gross
Revenue
($1,000s)
Television
Advertising
($1,000s)
Newspaper
Advertising
($1,000s)
96
5.0
1.5
90
2.0
2.0
95
4.0
1.5
92
2.5
2.5
95
3.0
3.3
94
3.5
2.3
94
2.5
4.2
94
3.0
2.5
(a)
Develop an estimated regression equation with the amount of
television advertising as the independent variable. (Round...
The owner of Showtime Movie Theaters, Inc., would like to predict weekly gross revenue as a...
The owner of Showtime Movie Theaters, Inc., would like to
predict weekly gross revenue as a function of advertising
expenditures. Historical data for a sample of eight weeks
follow.
Weekly
Gross
Revenue
($1,000s)
Television
Advertising
($1,000s)
Newspaper
Advertising
($1,000s)
96
5.0
1.5
90
2.0
2.0
95
4.0
1.5
92
2.5
2.5
95
3.0
3.3
94
3.5
2.3
94
2.5
4.2
94
3.0
2.5
(a)
Develop an estimated regression equation with the amount of
television advertising as the independent variable. (Round...
1. The owner of Showtime Movie Theaters, Inc. would like to estimate weekly gross revenue as...
1. The owner of Showtime Movie Theaters, Inc.
would like to estimate weekly gross revenue as a function of
advertising expenditures. Historical data for a sample of eight
weeks follow.
Weekly Gross
Television
Newspaper
Radio
Revenue
Advertising
Advertising
Advertising
($1000s)
($1000s)
($1000s)
($1000s)
96
5
1.5
0.3
90
2
2
0.2
95
4
1.5
0.3
92
2.5
2.5
0.1
95
3
3.3
0.4
94
3.5
2.3
0.4
94
2.5
4.2
0.3
94
3
2.5
0.3
Is the estimated regression equation...
1. The owner of Showtime Movie Theaters, Inc. would like to estimate weekly gross revenue as...
1. The owner of Showtime Movie Theaters, Inc.
would like to estimate weekly gross revenue as a function of
advertising expenditures. Historical data for a sample of eight
weeks follow.
Weekly Gross
Television
Newspaper
Radio
Revenue
Advertising
Advertising
Advertising
($1000s)
($1000s)
($1000s)
($1000s)
96
5
1.5
0.3
90
2
2
0.2
95
4
1.5
0.3
92
2.5
2.5
0.1
95
3
3.3
0.4
94
3.5
2.3
0.4
94
2.5
4.2
0.3
94
3
2.5
0.3
Use the F test to...
1. The owner of Showtime Movie Theaters, Inc. would like to estimate weekly gross revenue as...
1. The owner of Showtime Movie Theaters, Inc.
would like to estimate weekly gross revenue as a function of
advertising expenditures. Historical data for a sample of eight
weeks follow.
Weekly Gross
Television
Newspaper
Radio
Revenue
Advertising
Advertising
Advertising
($1000s)
($1000s)
($1000s)
($1000s)
96
5
1.5
0.3
90
2
2
0.2
95
4
1.5
0.3
92
2.5
2.5
0.1
95
3
3.3
0.4
94
3.5
2.3
0.4
94
2.5
4.2
0.3
94
3
2.5
0.3
Develop an estimated regression equation...
1. The owner of Showtime Movie Theaters, Inc. would like to estimate weekly gross revenue as...
1. The owner of Showtime Movie Theaters, Inc.
would like to estimate weekly gross revenue as a function of
advertising expenditures. Historical data for a sample of eight
weeks follow.
Weekly Gross
Television
Newspaper
Radio
Revenue
Advertising
Advertising
Advertising
($1000s)
($1000s)
($1000s)
($1000s)
96
5
1.5
0.3
90
2
2
0.2
95
4
1.5
0.3
92
2.5
2.5
0.1
95
3
3.3
0.4
94
3.5
2.3
0.4
94
2.5
4.2
0.3
94
3
2.5
0.3
Develop an estimated regression equation...
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