Use computer software packages, such as Minitab or Excel, to solve this problem. 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 Television Newspaper Gross Revenue Advertising Advertising ($1,000s) ($1,000s) ($1,000s) 100 5.0 1.5 90 2.0 2.0 95 4.0 1.5 92 2.5 2.5 97 3.0 3.3 94 3.5 2.3 94 2.5 4.2 97 3.0 2.5 a. Develop an estimated regression equation with the amount of television advertising as the independent variable (to 1 decimal). Revenue= _______ + __________TVAdv b. Develop an estimated regression equation with both television advertising and newspaper advertising as the independent variables (to 2 decimals). _Revenue= ________ + _________TVAdv +____________NVAdv c. Is the estimated regression equation coefficient for television advertising expenditures the same in part (a) and in part (b)? - Select your answer -Yes, the coefficients are the sameNo, the coefficients are not the sameItem 6 d. Predict weekly gross revenue for a week when $3.3 thousand is spent on television advertising and $1.6 thousand is spent on newspaper advertising? NOTE: To compute the predicted revenues, use the coefficients you have computed rounded to two decimals, as you have entered them here. Then, also round your predicted revenue to two decimal places. $ in thousands
Use computer software packages, such as Minitab or Excel, to solve this problem.
The owner of Showtime Movie Theaters, Inc., would like to predict weekly gross revenue as a
| Weekly | Television | Newspaper |
| Gross Revenue | Advertising | Advertising |
| ($1,000s) | ($1,000s) | ($1,000s) |
| 100 | 5.0 | 1.5 |
| 90 | 2.0 | 2.0 |
| 95 | 4.0 | 1.5 |
| 92 | 2.5 | 2.5 |
| 97 | 3.0 | 3.3 |
| 94 | 3.5 | 2.3 |
| 94 | 2.5 | 4.2 |
| 97 | 3.0 | 2.5 |
a. Develop an estimated regression equation with the amount of television advertising as the independent variable (to 1 decimal).
Revenue= _______ + __________TVAdv
b. Develop an estimated regression equation with both television advertising and newspaper advertising as the independent variables (to 2 decimals).
_Revenue= ________ + _________TVAdv +____________NVAdv
c. Is the estimated regression equation coefficient for television advertising expenditures the same in part (a) and in part (b)?
- Select your answer -Yes, the coefficients are the sameNo, the coefficients are not the sameItem 6
d. Predict weekly gross revenue for a week when $3.3 thousand is spent on television advertising and $1.6 thousand is spent on newspaper advertising?
NOTE: To compute the predicted revenues, use the coefficients you have computed rounded to two decimals, as you have entered them here. Then, also round your predicted revenue to two decimal places.
$ in thousands
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
