Essentials Of Statistics For Business & Economics
Essentials Of Statistics For Business & Economics
9th Edition
ISBN: 9780357045435
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Publisher: South-Western College Pub
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Textbook Question
Chapter 15.5, Problem 23E

Testing Significance in Theater Revenue. Refer to exercise 5.

  1. a. Use α = .01 to test the hypotheses

H 0 : β 1 = β 2 = 0 H a : β 1 and/or β 2 is not equal to zero

for the model y = β0 + β1x1 + β2x2 + ϵ, where

x 1 = television advertising ( $ 1000 s ) x 2 = newspaper advertising ( $ 1000 s )

  1. b. Use α = .05 to test the significance of β1. Should x1 be dropped from the model?
  2. c. Use α = .05 to test the significance of β2. Should x2 be dropped from the model?

5. 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.

Chapter 15.5, Problem 23E, Testing Significance in Theater Revenue. Refer to exercise 5.
Use α = .01 to test the

  1. a. Develop an estimated regression equation with the amount of television advertising as the independent variable.
  2. b. Develop an estimated regression equation with both television advertising and newspaper advertising as the independent variables.
  3. 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.
  4. 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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Fill in the blanks. a. In the forward selection method, a predictor variable is entered into the regression equation at a step if the absolute value of the t-statistic for its utility is greater than ______ and is ______ among all such t-statistics for variables not yet entered. b. In stepwise regression, a predictor variable that is entered at one step can be deleted at a later step if the absolute value of its t-statistic is _______ among all such t-statistics for predictor variables in the regression equation and if the absolute value of its t-statistic is less than _________. c. A commonly used value for tenter that corresponds to an approximate 5% level of significance for testing the utility of an individual predictor variable is _______.
Fill in the blanks. a. In the forward selection method, a predictor variable is entered into the regression equation at a step if the absolute value of the t-statistic for its utility is greater than______and is_______among all such t-statistics for variables not yet entered.b. In stepwise regression, a predictor variable that is entered at one step can be deleted at a later step if the absolute value of its t-statistic is______among all such t-statistics for predictor variables in the regression equation and if the absolute value of its t-statistic is less than_______.c. A commonly used value for tenter that corresponds to an approximate 5% level of signicance for testing the utility of an individual predictor variable is________.

Chapter 15 Solutions

Essentials Of Statistics For Business & Economics

Ch. 15.3 - In exercise 1, the following estimated regression...Ch. 15.3 - In exercise 2, 10 observations were provided for a...Ch. 15.3 - 13. In exercise 3, the following estimated...Ch. 15.3 - In exercise 4, the following estimated regression...Ch. 15.3 - Prob. 15ECh. 15.3 - 16. In exercise 6, data were given on the average...Ch. 15.3 - Quality of Fit in Predicting House Prices. Revisit...Ch. 15.3 - R2 in Predicting Baseball Pitcher Performance....Ch. 15.5 - In exercise 1, the following estimated regression...Ch. 15.5 - Refer to the data presented in exercise 2. The...Ch. 15.5 - The following estimated regression equation was...Ch. 15.5 - Testing Significance in Shoe Sales Prediction. In...Ch. 15.5 - Testing Significance in Theater Revenue. Refer to...Ch. 15.5 - Testing Significance in Predicting NFL Wins. The...Ch. 15.5 - Auto Resale Value. The Honda Accord was named the...Ch. 15.5 - Testing Significance in Baseball Pitcher...Ch. 15.6 - In exercise 1, the following estimated regression...Ch. 15.7 - Consider a regression study involving a dependent...Ch. 15.7 - Consider a regression study involving a dependent...Ch. 15.7 - 34. Management proposed the following regression...Ch. 15.7 - Repair Time. Refer to the Johnson Filtration...Ch. 15.7 - Extending Model for Repair Time. This problem is...Ch. 15.7 - Pricing Refrigerators. Best Buy, a nationwide...Ch. 15.9 - In Table 15.12 we provided estimates of the...Ch. 15 - 49. The admissions officer for Clearwater College...Ch. 15 - 50. The personnel director for Electronics...Ch. 15 - A partial computer output from a regression...Ch. 15 - Analyzing College Grade Point Average. Recall that...Ch. 15 - Analyzing Job Satisfaction. Recall that in...Ch. 15 - Analyzing Repeat Purchases. The Tire Rack,...Ch. 15 - Zoo Attendance. The Cincinnati Zoo and Botanical...Ch. 15 - Mutual Fund Returns. A portion of a data set...Ch. 15 - Gift Card Sales. For the holiday season of 2017,...Ch. 15 - Consumer Research, Inc., is an independent agency...Ch. 15 - Matt Kenseth won the 2012 Daytona 500, the most...Ch. 15 - When trying to decide what car to buy, real value...
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