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fThe owner of Showtime Movie Theaters, Inc., used multiple regression analysis to predict gross revenue (3;) as a function of television advertising ($1) and newspaper
\fThe owner of Showtime Movie Theaters, Inc., used multiple regression analysis to predict gross revenue (3;) as a function of television advertising ($1) and newspaper advertising (12). Values of y, :31, and I; are expressed in thousands of dollars. Weekly Gross Television Newspaper Revenue Advertising Advertising ($10003) ($10003) ($10008) 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 estimated regression equation was :1} = 83.23 + 2.2931 + 1.30123 a. What is the gross revenue expected for a week where $3,500 is spent on television (31 = 3.5) and $1,800 is spent on newspaper advertising [:2 = 1.8) (to 3 decimals)? $' 93.585 @ thousand b. Provide a 95% prediction interval for next week's revenue, assuming that the advertising expenditures will be allocated as in part (a) (to 2 decimals). ( $l 7' 0 thousand, $_ 7 5 0 thousand)
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