Question
A statistical program is recommended.The owner of Showtime Movie Theaters, Inc., would like to predict weekly gross revenue as a function of advertising expenditures. Historical
A statistical program is recommended.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
= 83.2 + 2.29x1 + 1.30x2.
(a)What is the gross revenue (in dollars) expected for a week when $2,500 is spent on television advertising(x1 = 2.5)and $4,200 is spent onnewspaper advertising(x2 = 4.2)?(Round your answer to the nearest dollar.)$
(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 $
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