Question

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. Television Weekly Newspaper Gross Revenue Advertising Advertising ($1,000s) ($1,000s) ($1,000s) 99 5.0 1.5 2.0 90 2.0 95 4.0 1.5 92 2.5 2.5 101 3.0 3.3 94 3.5 2.3 94 2.5 4.2 2.5 99 3.0 a. Develop an estimated regression equation with the amount of television advertising as the independent variable (to 1 decimal) TVAdv Revenue b. Develop an estimated regression equation with both television advertising and newspaper advertising as the independent variables (to 2 decimals) TVAdv NVAdv Revenue= c. Is the estimated regression equation coefficient for television advertising expenditures the same in part (a) and in part (b)? No, the coefficients are not the same d. Predict weekly gross revenue for a week when $3.2 thousand is spent on television advertising and $1.7 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

Answer 1

Answer Date: 11/11/2019 a) The regression equation of weekly gross revenue (v) on television advertising (x) is, By using Excel software, find regression equation with help of following steps: 1) Import the data. Select Data Analysis from Data menu. Select Regression and click OK. Input Y Range and Input X range. Click Ok. Intercept Television Coefficients Standard Errort Stat P-value 88.72463768 4.535004696 19.5644 1.16E-OG 2.125603865 1.369301778 1.552327 0.171571 From the Excel output, the regression equation of weekly gross revenue (v) on television advertising (x) is,

y= Be + B, = 88.7 +2.1x b) The regression equation of weekly gross revenue (V) on television advertising and newspaper advertising (x's) is, aman By using Excel software, find regression equation with help of following steps: 1) Import the data. Select Data Analysis from Data menu. Select Regression and click OK. Input Y Range and Input X range. Click Ok. Coefficients Intercept 79.24785214 Television 3.328375809 Newspaper 2.279979785 Standard Error Stat P-value 7.891273886 10.04247 0.000168 1.524559391 2.183172 0.080789 1.607976404 1.417919 0.215414

From the Excel output, the regression equation of weekly gross revenue (y) on television advertising and newspaper advertising (x's) is, y= Be + Bx+ B2 x2 = 79.25 +3.33 x1 + 2.28x2 The estimated regression equation coefficient for television advertising expenditures is not same in part (a) and part (b). The predict weekly gross revenue for a week when $3.2 thousand spent on television advertising and $1.7 thousand spent on newspaper advertising is, y= Be + B. x+ B2 .x2 = 79.25 +3.33 X 3.2 +2.28x1.7 = 93.77

The predict weekly gross revenue for a week when $3.2 thousand spent on television advertising and $1.7 thousand spent on newspaper advertising is 93.77.