Testing Significance in Theater Revenue. Refer to exercise 5.
- a. Use α = .01 to test the hypotheses
for the model y = β0 + β1x1 + β2x2 + ϵ, where
- b. Use α = .05 to test the significance of β1. Should x1 be dropped from the model?
- 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
- 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 $2300 is spent on newspaper advertising.
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Chapter 15 Solutions
Essentials Of Statistics For Business & Economics