Statistics

Angela Henkemeyer

Ch 15

5. The owner of Showtime Movie Theaters, Inc., would like to estimate weekly gross revenue as a function of advertising expenditures. Historical data for a sample of eight weeks follow.

Weekly gross revenue Television ADV Newspaper ADV

97 5.0 1.5

90 2.0 2.0

95 4.0 1.5

92 2.5 2.5

99 3.0 3.3

94 3.5 2.3

94 2.5 4.2

93 3.0 2.5

Develop an estimated regression equation with the amount of television advertising as the independent variable. Rev= 19.8tvadv

Develop an estimated regression equation with both television advertising and newspaper advertising as the independent variables. Rev= 19.8 tvadv + 25.5 newsadv

Is the estimated regression equation coefficient for television advertising expenditures the same in part (a) and in part (b)? no. Part a is 19,8 and B is 25.5

What is the estimate of the weekly gross revenue for a week when $3.6 thousand is spent on television advertising and $1800 is spent on newspaper advertising? Approximately $95,000.

15. The owner of Showtime Movie Theaters, Inc., used multiple regression analysis to predict gross revenue (y) as a function of television advertising (x1) and newspaper advertising (x2). The estimated regression equation was

b. When television advertising was the only independent variable, R2 = .653 and R2a = .595. Are the multiple regression analysis results preferable?

17. In exercise 9, an estimated regression equation was developed relating the top speed for a boat to the boat’s beam and horsepower rating:

21. The following estimated regression equation was developed for a model involving two independent variables.

After x2 was dropped from the model, the least squares method was used to obtain an estimated regression equation involving only x1 as an independent variable.