Question

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 Gross Revenue ($1000s) Televison Advertising ($1000s) Newspaper Advertising ($1000s) a. Use a = 0.01 to test the hypotheses H: B1 = By = 0 H : 81 and/or Ba is not equal to zero for the model y = 0o + 1x1 + 02.02 + E, where 21 = television advertising ($1000s) y = newspaper advertising ($1000s) Compute the F test statistic (to 2 decimals). Use Ftable. What is the p-value? - Select your answer - What is your conclusion? - Select your answer - b. Use a = 0.05 to test the significance of B1. Compute the t test statistic (to 2 decimals). Use t table. What is the p-value? - Select your answer - What is your conclusion? - Select your answer - Should y be dropped from the model? - Select your answer - c. Use o = 0.05 to test the significance of Ba. Compute the t test statistic (to 2 decimals). Use t table. What is the p-value? - Select your answer - What is your conclusion? - Select your answer -

Answer 1

EXCEL (Data Analysis) output:

SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations 0.872411735 0.761102235 0.665543129 1.045445969 8 ANOVA Significance F df SS MS F Regression Residual Total 2 17.41021363 8.705107 7.964727 0.027895247 5 5.464786368 1.092957 22.875 7 Upper 95% 85.56453466 92.27764409 Coefficients Standard Error P-value tStat Lower 95% Intercept Television Advertising Newspaper Advertising 88.92108937 1.305756802 68.09927 1.29E-08 0.377781993 1.957465814 1.167623904 0.30726192 3.800093 0.012627 0.063287496 0.028870673 2.192103 0.079885 -0.010926933 0.137501924 The value of F test statistic is F7.96 0.01 p-value <0.05 Conclusion: Fail to reject Ho

(b) The value oft test statistic is t3.80 0.01 p-value < 0.05 Conclusion: Reject Ho No. (c) The value of F test statistic is t 2.19 0.05 <p-value < 0.10 Conclusion: Fail to reject Ho