Theater Revenue. 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) 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 1 and in Part 2? Interpret the coefficient in each case. d. Predict weekly gross revenue for a week when $3500 is spent on television advertising and $2300 is spent on newspaper advertising.
Theater Revenue. The owner of Showtime Movie Theaters, Inc., would like to predict weekly gross revenue as 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 1 and in Part 2? Interpret the coefficient in each case.
d. Predict weekly gross revenue for a week when $3500 is spent on television advertising and $2300 is spent on newspaper advertising.
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