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 Newspaper Advertising Advertising ($1,000s) ($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 The owner then used multiple regression analysis to predict gross revenue (y), in thousands of dollars, as a function of television advertising (x), in thousands of dollars, and newspaper advertising (x2), in thousands of dollars. The estimated regression equation was ŷ 83.2+2.29x, +1.30x2. (a) What is the gross revenue (in dollars) expected for a week when $2,500 is spent on television advertising (x = 2.5) and $4,200 is spent on newspaper advertising (x2 = 4.2)? (Round your answer to the nearest dollar.) $94385 (b) Provide a 95% confidence interval (in dollars) for the mean revenue of all weeks with the expenditures listed in part (a). (Round your answers to the nearest dollar.) to $ $ (c) Provide a 95% prediction interval (in dollars) for next week's revenue, assuming that the advertising expenditures will be allocated as in part (a). (Round your answers to the nearest dollar.) to $
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 Newspaper Advertising Advertising ($1,000s) ($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 The owner then used multiple regression analysis to predict gross revenue (y), in thousands of dollars, as a function of television advertising (x), in thousands of dollars, and newspaper advertising (x2), in thousands of dollars. The estimated regression equation was ŷ 83.2+2.29x, +1.30x2. (a) What is the gross revenue (in dollars) expected for a week when $2,500 is spent on television advertising (x = 2.5) and $4,200 is spent on newspaper advertising (x2 = 4.2)? (Round your answer to the nearest dollar.) $94385 (b) Provide a 95% confidence interval (in dollars) for the mean revenue of all weeks with the expenditures listed in part (a). (Round your answers to the nearest dollar.) to $ $ (c) Provide a 95% prediction interval (in dollars) for next week's revenue, assuming that the advertising expenditures will be allocated as in part (a). (Round your answers to the nearest dollar.) to $
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section: Chapter Questions
Problem 8SGR
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