Question

The following data describes weekly gross revenue, television advertising, and newspaper advertising for Showtime Movie Theaters. Weekly Gross Televison Newspaper Advertising Advertising Revenue ($1000s) ($1000s) ($1000s) 1.5 2 1.5 2.5 3.3 2.3 90 2 4 2.5 92 95 94 94 94 3.5 2.5 2.5 a. Find an estimated regression equation relating weekly gross revenue to television advertising expenditures and newspaper advertising expenditures (to 2 decimals) Revenue = 83.78 1.78 TVAdv + | 1.47 NewsAdv

Answer 1

Enter data in excel.

Click on Data->Data Analysis and select Regression.

Enter Revenue data range in Y variable and TVAdv and NewsAdv data range in X variable.

Give output range and click OK.

The output is shown below:

From above output, using Coefficient column, an estimated regression equation relating weekly gross revenue to television advertising expenditures and newspaper advertising expenditures is:

$\dpi{100} Revenue = {\color{Red} 80.98}+{\color{Red} 3.12} \ TVAdv +{\color{Red} 1.29} \ NewsAdv$