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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 awners would like to estimate

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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 awners 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. (a) Use the data to develop an esumated regression equation with the arnount of television advertising as the independent variable. Let x represent the amount of television advertusing. If reguired, round your answers to three decimal places. For subtractive or negative numbers use a munus sign even if there is a i sign before the blank. (Example: -300) 9= Test for a significant relacionship between television advertising and weeliy gross revenue at the 0.05 level of vignificance. What is the interpretation of this relationship? There a significant relationshup between the amount spent on television advertising and weekly gross revenue. The estimated regression equstion is the best eptimate of the - Select your answer quven the 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. Let x represent the amount of television advertising. Let xz represent the amount of newspaper advertising. If required, round your answers to three decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: .300) Test whether each of the regression parameters 0,2, and 2 is equal to zero at a 0.05 level of signaficance. WeWeWeconcludethat0=0.concludethat1=0.concludethat2=0. What are the correct interpretations of the estimated regression parameters? Are these interpretations reasonable? (i) Po is the estimate of change in the weekly gross revenue if newspaper adwertasing is held constant and there is a s100 increase in televian advertising. fil is is the 2 estimate of change in the weekly gross revenue if television advertising is held constant and there is a 5100 increase in newspaper advertising. 2 is the estimate of the weekly gross revenue when television and newspaper advertising are both yero. The interpretation of 0. L, and 2 are all reasonable. (ii) Bo is the estarnate of the weekiv gross revenue when television and newspaper advertising are both zero. At is the estrmate of change in the weekly gross revenue If newspaper advertising is held constant and there is a $100 increase in television advertising. 2 is the estimate of change in the weekly gross revenue if television adventiving is held constant and there is a $100 increase in newspuper advertising. The interpretation of o is not reasonable but the interpretations of fft and fz ore reavonable. (iii) Po is the estimate of the weekdy gross revenue when television and newspoper aifyertiseng are both sero. 9 is is the estimate of change in the weekly oross revenue If television advertining is beld constant and there is a $100 incresse in newspaper advertising. Py is the estimate of change in the weekly gross revenue if newspaper advertising is held constant and there is a $100 increase in televirion advertsing: The interpretabon of Ro is not reasonable but the interpretations of A1 and B2 are reasonable. (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. (e) Given the results in part (a) and part (c), what should your next step be? Explain. The input in the box below will not be graded, but may be reviewed and considered by your instructor. (i) What are the maragenal ifnplications of these results? Management can feel confident that increased spending on also suggest that advertising may be slightly more effective than odvertising results in increased weekly gross revenue. The resul advertising in generating revenue

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