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 Television Advertising ($1000s) Newspaper Advertising ($1000s) ($1000s) 96 5.0 1.5 90 2.0 2.0 1.5 2.5 3.3 95 4.0 92 2.5 95 3.0 94 3.5 2.3 94 2.5 4.2 94 3.0 2.5 a. Develop an estimated regression equation with the amount of television advertising as the independent variable. b. Develop an estimated regression equation with both television advertising and newspaper advertising as the independent variables. c. Is the estimated regression equation coefficient for television advertising expenditures the same in part (a) and in part (b)? Interpret the coefficient in each case. d. Predict weekly gross revenue for a week when $3500 is spent on television advertising and $1800 is spent on newspaper advertising?
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
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