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) 96 5.0 1.5 90 2.0 2.0 95 4.0 1.5 92 2.5 2.5 95 3.0 3.3 94 3.5 2.3 94 2.5 4.2 94 3.0 2.5 The owner then used multiple regression analysis to predict gross revenue (y), in thousands of dollars, as a function of television advertising (x1), in thousands of dollars, and newspaper advertising (x2), in thousands of dollars. The estimated regression equation was ŷ = 83.2 + 2.29x1 + 1.30x2. (a)What is the gross revenue (in dollars) expected for a week when $3,000 is spent on television advertising (x1 = 3)and $3,300 is spent on newspaper advertising(x2 = 3.3)? (Round your answer to the nearest dollar.) $ (b)Provide a 95% confidence interval (in dollars) for the mean revenue of all weeks with the expenditures listed in part (a). (Round your answers to the nearest dollar.) $ to $ (c)Provide a 95% prediction interval (in dollars) for next week's revenue, assuming that the advertising expenditures will be allocated as in part (a). (Round your answers to the nearest dollar.) $ to $

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Related questions

Concept explainers

Question

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)
96	5.0	1.5
90	2.0	2.0
95	4.0	1.5
92	2.5	2.5
95	3.0	3.3
94	3.5	2.3
94	2.5	4.2
94	3.0	2.5

The owner then used multiple regression analysis to predict gross revenue

(y),

in thousands of dollars, as a function of television advertising

(x₁),

in thousands of dollars, and newspaper advertising

(x₂),

in thousands of dollars. The estimated regression equation was

ŷ = 83.2 + 2.29x₁ + 1.30x₂.

(a)What is the gross revenue (in dollars) expected for a week when $3,000 is spent on television advertising

(x₁ = 3)and $3,300 is spent on newspaper advertising(x₂ = 3.3)?

(Round your answer to the nearest dollar.)

(b)Provide a 95% confidence interval (in dollars) for the mean revenue of all weeks with the expenditures listed in part (a). (Round your answers to the nearest dollar.)

$ to $

(c)Provide a 95% prediction interval (in dollars) for next week's revenue, assuming that the advertising expenditures will be allocated as in part (a). (Round your answers to the nearest dollar.)

$ to $

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

$Point Estimation, Limit Theorems, Approximations, and Bounds$

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.

Similar questions