a. Develop an estimated regression equation with the amount of television advertising as the independent variable (to 1 decimal). Revenue = TVAdv b. Develop an estimated regression equation with both television advertising and newspaper advertising as the independent variables (to 2 decimals). Revenue = TVAdv + NVAdv c. Is the estimated regression equation coefficient for television advertising expenditures the same in part (a) and in part (b)? - Select your answer - Interpret the coefficient in each case.

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a. Develop an estimated regression equation with the amount of television advertising as the independent variable (to 1 decimal).

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 ($1,000s) | Television Advertising ($1,000s) | Newspaper Advertising ($1,000s) |
|-----------------------------------|------------------------------------|------------------------------------|
| 104                               | 5.0                                | 1.5                                |
| 90                                | 2.0                                | 2.0                                |
| 95                                | 4.0                                | 1.5                                |
| 92                                | 2.5                                | 2.5                                |
| 100                               | 3.0                                | 3.3                                |
| 94                                | 3.5                                | 2.3                                |
| 95                                | 4.2                                | 4.2                                |
| 96                                | 3.0                                | 2.5                                |

**Questions:**

a. Develop an estimated regression equation with the amount of television advertising as the independent variable (to 1 decimal).
\[ \text{Revenue} = \_\_\_\_ + \_\_\_\_ \times \text{TVAdv} \]

b. Develop an estimated regression equation with both television advertising and newspaper advertising as the independent variables (to 2 decimals).
\[ \text{Revenue} = \_\_\_\_ + \_\_\_\_ \times \text{TVAdv} + \_\_\_\_ \times \text{NVAdv} \]

c. Is the estimated regression equation coefficient for television advertising expenditures the same in part (a) and in part (b)?

- Select your answer -

**Interpret the coefficient in each case:**

- In - Select your answer -, the coefficient is an estimate of the change in revenue due to a one-unit change in television advertising expenditures.
  
- In - Select your answer -, the coefficient is an estimate of the change in revenue due to a one-unit change in television advertising expenditures with the amount of newspaper advertising held constant.
Transcribed Image Text: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 ($1,000s) | Television Advertising ($1,000s) | Newspaper Advertising ($1,000s) | |-----------------------------------|------------------------------------|------------------------------------| | 104 | 5.0 | 1.5 | | 90 | 2.0 | 2.0 | | 95 | 4.0 | 1.5 | | 92 | 2.5 | 2.5 | | 100 | 3.0 | 3.3 | | 94 | 3.5 | 2.3 | | 95 | 4.2 | 4.2 | | 96 | 3.0 | 2.5 | **Questions:** a. Develop an estimated regression equation with the amount of television advertising as the independent variable (to 1 decimal). \[ \text{Revenue} = \_\_\_\_ + \_\_\_\_ \times \text{TVAdv} \] b. Develop an estimated regression equation with both television advertising and newspaper advertising as the independent variables (to 2 decimals). \[ \text{Revenue} = \_\_\_\_ + \_\_\_\_ \times \text{TVAdv} + \_\_\_\_ \times \text{NVAdv} \] c. Is the estimated regression equation coefficient for television advertising expenditures the same in part (a) and in part (b)? - Select your answer - **Interpret the coefficient in each case:** - In - Select your answer -, the coefficient is an estimate of the change in revenue due to a one-unit change in television advertising expenditures. - In - Select your answer -, the coefficient is an estimate of the change in revenue due to a one-unit change in television advertising expenditures with the amount of newspaper advertising held constant.
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