Question

mework 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) ة مية مية مية مية a. Use a 0.01 to test the hypotheses Ho : B1 = B = 0 H, B, and/or B, is not equal to zero for the model y Bo + B + Byt + e, where 21 = television advertising ($1000s) 2 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 B. Compute the test statistic (to 2 decimals). Use t table

Answer 1

Solution:

We can use the excel regression data analysis tool to find the answers to the given questions. The excel output is given below:

SUMMARY OUTPUT Regression Statistics Multiple R 0.9896 R Square 0.9794 Adjusted R Square 0.9711 Standard Error 0.3004 Observations ANOVA Significance F df SS MS F 0.0001 Regression 2 21.4239 10.7119 118.7242 Residual 5 0,4511 0.0902 Total 7 21.875 Coefficients Standard Error P-value Lower 95% t Stat Upper 95% Intercept Television Advertising ($1000s) Newspaper Advertising ($1000s) 86.8698 0.5255 165.3068 0.0000 85.5190 88.2207 0.0000 1.3212 0.0879 15.0329 1.0953 1.5471 0.9406 0.0999 9.4198 0.0002 0.6839 1.1973

mework 32=newspaper advertising ($1000s) Compute the F test statistic (to 2 decimals). Use F table. 118.72 What is the p-value? Less than 0.01 Select your answer- What is your conclusion? Overall regression is significant Select your answer 0.05 to test the significance of B. Compute the t test statistic (to 2 decimals). Use t table. b. Use a 15.03 What is the p-value? -Select your answer Less than 0.01 What is your conclusion? There is significant relationship between Television advertising and Revenue -Select your answer Should x1 be dropped from the model? No, x1 should not be dropped - Select your answer- c. Use a 0.05 to test the significance of B. Compute the t test statistic (to 2 decimals). Use t table. 9,42 What is the p-value? -Select your answer - Less than 0.01 What is your conclusion? There is significant relationship between Newspaper advertising and Revenue - Select your answer- Should 2 be dropped from the model? No, x2 should not be dropped Select your answer-