The owner of Showtime Movie Theaters, Inc., would like to predict weekly gross revenueas a function of advertising expenditures. Historical data for a sample of eight weeks follow. Weekly GrossRevenue($1000s) Television Advertising($1000s) Newspaper Advertising($1000s) 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 televisionadvertising as the independent variable.b. Develop an estimated regression equation with both television advertising and newspaper advertising as the independent variables. c. Is the estimated regression equation coefficient for television advertisingexpenditures the same in part (a) and in part (b)? Interpret the coefficient in each case. d. Predict weekly gross revenue for a week when $3500 is spent on television advertising and $1800 is spent on newspaper advertising.
The owner of Showtime Movie Theaters, Inc., would like to predict weekly gross revenueas a
| Weekly Gross Revenue ($1000s) |
Television Advertising ($1000s) |
Newspaper Advertising ($1000s) |
| 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.
b. Develop an estimated regression equation with both television advertising and newspaper advertising as the independent variables.
c. Is the estimated regression equation coefficient for television advertising
expenditures the same in part (a) and in part (b)? Interpret the coefficient in each case.
d. Predict weekly gross revenue for a week when $3500 is spent on television advertising and $1800 is spent on newspaper advertising.
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