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 follows: Weekly Revenue (£1000s) Television advertising (£1000s) Newspaper advertising (£1000s) 96 5 1.5 90 2 2 95 4 1.5 92 2.5 2.5 95 3 3.3 94 3.5 2.3 94 2.5 4.2 94 3 2.5 a) Calculate the correlation coefficient among the variables and explain the result. b) Plot two simple linear regression equations- i) television advertising as independent variable and weekly revenue as dependent variable ii) newspaper advertising as the independent variable and weekly revenue as dependent variable. You would be using Excel Data Analysis Pack – Regression to get the relationship; c) Create scatter diagrams for each linear relationship and display the linear regression equation and R square value on chart.

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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 follows:

Weekly Revenue (£1000s) Television advertising (£1000s) Newspaper advertising (£1000s)

96 5 1.5

90 2 2

95 4 1.5

92 2.5 2.5

95 3 3.3

94 3.5 2.3

94 2.5 4.2

94 3 2.5

a) Calculate the correlation coefficient among the variables and explain the result.

b) Plot two simple linear regression equations- i) television advertising as independent variable and weekly revenue as dependent variable ii) newspaper advertising as the independent variable and weekly revenue as dependent variable. You would be using Excel Data Analysis Pack – Regression to get the relationship;

c) Create scatter diagrams for each linear relationship and display the linear regression equation and R square value on chart.

 

 

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