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 6 2.5 90 2 2 96 5 1.5 92 2.5 3.5 96 4 4.3 94 3.5 2.3 94 2.5 5.2 94 3 3.5 a. Use a = 0.01 to test the hypotheses Ho: B1 = B2 = 0 Ha: B1, and/or B2 is not equal to zero for the model y=Bo + B1X1 + B2X2 + E, where x1= television advertising ($1,000s) x2= newspaper advertising (1,000s) Compute the test statistic (to 2 decimals). Use F table. __________ b. Use a = 0.05 to test the significance of B1. Compute the t test statistic (to 2 decimals). Use t table. ____________ c. Use a = 0.05 to test the significance of B2. Compute the test statistic (to 2 decimals). Use t table. _______________
The owner of Showtime Movie Theaters, Inc., would like to predict weekly gross revenue as a
| Weekly Gross Revenue ($1000s) | Televison Advertising ($1000s) | Newspaper Advertising ($1000s) |
| 97 | 6 | 2.5 |
| 90 | 2 | 2 |
| 96 | 5 | 1.5 |
| 92 | 2.5 | 3.5 |
| 96 | 4 | 4.3 |
| 94 | 3.5 | 2.3 |
| 94 | 2.5 | 5.2 |
| 94 | 3 | 3.5 |
a. Use a = 0.01 to test the hypotheses
Ho: B1 = B2 = 0
Ha: B1, and/or B2 is not equal to zero
for the model y=Bo + B1X1 + B2X2 + E, where
x1= television advertising ($1,000s)
x2= newspaper advertising (1,000s)
Compute the test statistic (to 2 decimals). Use F table. __________
b. Use a = 0.05 to test the significance of B1. Compute the t test statistic (to 2 decimals). Use t table. ____________
c. Use a = 0.05 to test the significance of B2. Compute the test statistic (to 2 decimals). Use t table. _______________
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