The owner of Showtime Movie Theaters, Inc., would like to predict weekly gross r

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 Televison Newspaper Advertising Advertising (s1000s) (1000s)(s1000s) Revenue ($1000s) 1.5 97 91 95 92 96 94 94 94 4 2.5 4 3.5 3.5 4 1.5 2.5 4.3 2.3 4.2 2.5 a. Use = .01 to test the hypotheses Ho: 1 = 2 = 0 Ha: 1 and/or is not equal to zero for the model y = 0 + 1X1 + 2x2 + , where = television advertising ($1000s) x2newspaper advesing ($1000s)

Explanation / Answer

below is regression output of above data:

a)

F test statistic =39.22

b)

test statistic t =8.84

c) test statistic t =1.10

Regression Statistics Multiple R 0.9696 R Square 0.9401 Adjusted R Square 0.9161 Standard Error 0.5675 Observations 8.0000 ANOVA df SS MS F Significance F Regression 2.0000 25.2647 12.6323 39.2234 0.0009 Residual 5.0000 1.6103 0.3221 Total 7.0000 26.8750 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Intercept 86.3875 1.0038 86.0621 0.0000 83.8072 88.9678 TV ads 2.0139 0.2279 8.8360 0.0003 1.4280 2.5998 newspaper Ads 0.2165 0.1968 1.1000 0.3215 -0.2894 0.7224

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