Advertising and Sales. Regarding the household-appliance manufacturer that wants to analyze the relationship between total sales and the company’s expenditures on three primary means of advertising (television, magazines, and radio). The confidence and prediction intervals are for television advertising of $9.5 million, magazine advertising of $4.3 million, and radio advertising of $5.2 million. a. Obtain a point estimate for mean sales when the amounts spent on television, magazine, and radio advertising are $9.5 million, $4.3 million, and $5.2 million, respectively. b. Find a 95% confidence interval for mean sales when the amounts spent on television, magazine, and radio advertising are $9.5 million, $4.3 million, and $5.2 million, respectively. c. Determine the predicted sales if the amounts spent on television, magazine, and radio advertising are $9.5 million, $4.3 million, and $5.2 million, respectively. d. Determine a 95% prediction interval for sales if the amounts spent on television, magazine, and radio advertising are $9.5 million, $4.3 million, and $5.2 million, respectively. e. In part (c) we predicted total sales for expenditures of $9.5 million, $4.3 million, and $5.2 million on television, magazine, and radio advertising, respectively. Is this prediction appropriate, or are we extrapolating? (Hint: Find the point representing these expenditures on the pairwise plots of the predictor variables.) f. Is it appropriate to predict total sales for expenditures of $7.1 million, $3.5 million, and $6.1 million on television, magazine, and radio advertising, respectively?
Advertising and Sales. Regarding the household-appliance manufacturer that wants to analyze the relationship between total sales and the company’s expenditures on three primary means of advertising (television, magazines, and radio). The confidence and prediction intervals are for television advertising of $9.5 million, magazine advertising of $4.3 million, and radio advertising of $5.2 million.
a. Obtain a point estimate for mean sales when the amounts spent on television, magazine, and radio advertising are $9.5 million, $4.3 million, and $5.2 million, respectively.
b. Find a 95% confidence interval for mean sales when the amounts spent on television, magazine, and radio advertising are $9.5 million, $4.3 million, and $5.2 million, respectively.
c. Determine the predicted sales if the amounts spent on television, magazine, and radio advertising are $9.5 million, $4.3 million, and $5.2 million, respectively.
d. Determine a 95% prediction interval for sales if the amounts spent on television, magazine, and radio advertising are $9.5 million, $4.3 million, and $5.2 million, respectively.
e. In part (c) we predicted total sales for expenditures of $9.5 million, $4.3 million, and $5.2 million on television, magazine, and radio advertising, respectively. Is this prediction appropriate, or are we extrapolating? (Hint: Find the point representing these expenditures on the pairwise plots of the predictor variables.)
f. Is it appropriate to predict total sales for expenditures of $7.1 million, $3.5 million, and $6.1 million on television, magazine, and radio advertising, respectively?
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