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Dixie Showtime Movie Theaters, Inc., owns and operates a chain of cinemas in several markets in the southern U.S. The owners would like to estimate
Dixie Showtime Movie Theaters, Inc., owns and operates a chain of cinemas in several markets in the southern U.S. The owners would like to estimate weekly gross revenue as a function of advertising expenditures. Data for a sample of eight markets for a recent week follow.
Market | Weekly Gross Revenue ($100s) | Television Advertising ($100s) | Newspaper Advertising ($100s) | |
Mobile | 101.3 | 4.9 | 1.4 | |
Shreveport | 52.9 | 3.1 | 3.2 | |
Jackson | 75.8 | 4.2 | 1.5 | |
Birmingham | 127.2 | 4.5 | 4.3 | |
Little Rock | 137.8 | 3.6 | 4 | |
Biloxi | 102.4 | 3.5 | 2.3 | |
New Orleans | 236.8 | 5 | 8.4 | |
Baton Rouge | 220.6 | 6.8 | 5.9 |
(a) | Use the data to develop an estimated regression with the amount of television advertising as the independent variable. |
Letxrepresent the amount of television advertising. | |
If required, round your answers to four decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300) | |
=+x | |
(b) | How much of the variation in the sample values of weekly gross revenue does the model in part (a) explain? |
If required, round your answer to two decimal places. | |
% | |
(c) | Use the data to develop an estimated regression equation with both television advertising and newspaper advertising as the independent variables. |
Letx1represent the amount of television advertising. | |
Letx2represent the amount of newspaper advertising. | |
If required, round your answers to four decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300) | |
=+x1+x2 | |
(d) | How much of the variation in the sample values of weekly gross revenue does the model in part (c) explain? |
If required, round your answer to two decimal places. | |
% |
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