Aunt Erma’s Pizza restaurant keeps monthly records of total revenue, amount spent on TV advertising, and amount spent on newspaper advertising.
a. Specify notation and formulate a multiple regression equation for predicting the monthly revenue. Explain how to interpret the parameters in the equation.
b. State the null hypothesis that you would test if you want to analyze whether TV advertising is helpful, for a given amount of newspaper advertising.
c. State the null hypothesis that you would test if you want to analyze whether at least one of the sources of advertising has some effect on monthly revenue.