The owner of a movie theater company would like to predict weekly gross revenue as a function of advertising expenditures. Historical data for a sample of eight weeks follow. Use α = 0.01 to test the hypotheses H0: β1 = β2 = 0 Ha: β1 and/or β2 is not equal to zero for the model y = β0 + β1x1 + β2x2 + ε, where x1 = television advertising ($1,000s) x2 = newspaper advertising ($1,000s). Find the value of the test statistic. (Round your answer to two decimal places.) Find the p-value. (Round your answer to three decimal places.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
The owner of a movie theater company would like to predict weekly gross revenue as a
| H0: | β1 = β2 = 0 |
| Ha: | β1 and/or β2 is not equal to zero |
| x1 | = | television advertising ($1,000s) |
| x2 | = | newspaper advertising ($1,000s). |
Find the value of the test statistic. (Round your answer to two decimal places.)
Find the p-value. (Round your answer to three decimal places.
State your conclusion.
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