Question
In: Statistics and Probability
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 | 2.5 | 4.2 |
| 94 | 3 | 2.5 |
Predicted Revenue
| 755 | 4.7 | 3.6 |
| SUMMARY OUTPUT | |
| Regression Statistics | |
| Multiple R | 0.963069407 |
| R Square | 0.927502683 |
| Adjusted R Square | 0.898503756 |
| Standard Error | 0.588366119 |
| Observations | 8 |
ANOVA
| df | SS | MS | F | Significance F | |
| Regression | 2 | 22.14412655 | 11.07206327 | 31.98403459 | 0.001415158 |
| Residual | 5 | 1.730873452 | 0.34617469 | ||
| Total | 7 | 23.875 |
| Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | |
| Intercept | 86.48629019 | 1.219629396 | 70.91194298 | 1.06E-08 | 83.35113302 | 89.62144736 |
| Television Advertising($1000s) | 1.507601755 | 0.18912664 | 7.971387629 | 0.000501255 | 1.021436251 | 1.993767259 |
| Newspaper Advertising($1000s) | 1.017324671 | 0.28514978 | 3.567685274 | 0.016083057 | 0.284323826 | 1.750325516 |
Use ?? = .01 to test the hypotheses for the model y = ??0 + ??1??1 + ??2??2 + ??, where:
H0: ??1 = ??2 = 0
Ha: ??1 and/or ??2 ?0
Compute the F test statistic (to 2 decimals).
31.98
What is the p-value?
Less than .01
What is your conclusion?
The overall model is significant.
Use ?? = .05 to test the significance of ??1. Compute the t test statistic (to 2 decimals).
7.97
What is the p-value?
Less than .01
What is your conclusion?
Significant relationship between television advertising and revenue
Should x1 be dropped from the model?
No, x1 should not be dropped from the model.
Use ?? = .05 to test the significance of ??2. Compute the t test statistic (to 2 decimals).
3.57
What is the p-value?
Between .01 and .02
What is your conclusion?
Significant relationship between newspaper advertising and revenue
Should x2 be dropped from the model?
No, x2 should not be dropped from the model
The owner plans to spend (in $1000s) $4.7 on television advertising and $3.6 on newspaper advertising. What is the expected revenue (in $1000s) for this advertising combination (to the nearest whole number)?
$????????????????
Solutions
orchestra answered 2 years agoRelated Solutions
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...
The owner of Showtime Movie Theaters would like to estimate weekly gross revenue as a function...
The owner of Showtime Movie Theaters would like to estimate
weekly gross revenue as a function of advertising expenditures.
Historical data for a sample of eight weeks are as below:
Week
Weekly gross revenue ($1000s)
TV Advertising ($1000s)
Newspaper Advertising ($1000s)
1
96
5.0
1.5
2
90
2.0
2.0
3
95
4.0
1.5
4
92
2.5
2.5
5
95
3.0
3.3
6
94
3.5
2.3
7
94
2.5
4.2
8
94
3.0
2.5
Following are the regression results for the...
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.
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
Television
Newspaper
Gross Revenue
Advertising
Advertising
($1,000s)
($1,000s)
($1,000s)
100
5.0
1.5
90
2.0
2.0
95
4.0
1.5
92
2.5
2.5
103
3.0
3.3
94
3.5
2.3
94
2.5
4.2
94
3.0
2.5
Develop an estimated regression equation with the amount of television advertising as the independent variable (to 1...
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