Question

The owner of Showtime Movie Theaters, Inc., used multiple regression analysis to predict gross revenue (y) as a function of television advertising (11) and newspaper advertising (C2). Weekly Gross Revenue ($1000s) Televison Advertising ($1000s) Newspaper Advertising ($1000s) 2.5 The estimated regression equation was y = 85.5+ 2.06x1 -0.37x2. The computer solution provided SST = 26, SSR = 24.356. a. Compute R2 (to 3 decimals). 0.937 Compute R. (to 3 decimals). b. When television advertising was the only independent variable, RP = 0.892 and R2 = 0.874. Are the multiple regression analysis results preferable? Yes, because greater variability is explained when both independent variables are used

Answer 1

a) R- square=0.937. And R-square adjusted=0.912

We have given the table and the estimated regression equation was, 9 = 855 +2:06 x 0.37x2. and SST = 26 & SSR = 24.356 @ The R² - value is, R² = SSR SST 24356 26 - 0.93676923 R² = 0.937 and The adjusted ² value R² = . CI-R²)(n-1) is, n-p-1 Where, R² = sample R-square =0.937 P = Number of Regressors = 2 na Total sample size = 8 R² = (1-0.937) (8-1) 8-2- 1 = J 0.063 X 7 = -0.0882 = 0.9118 IR = 0.912 | correct answer is, because greater vanicebility is when both independent vanable 6 The explained are used,