Question

A marketing manager for higher education institutions needed more information about the effectiveness of three types of advertising used in the industry. To determine the effect of each type, the manager collected one week's data from 25 randomly selected universities. The following variables were recorded for each:

Weekly gross revenue.

Weekly expenditures on direct mailing.

Weekly expenditures on radio advertising.

Weekly expenditures on television commercials

All variables were recorded in thousands of dollars.

a.Estimate the multiple regression equation.

b. Interpret the estimated coefficients.

c. Interpret the coefficient of determination.

d. Test the overall usefulness of the model. Explain your results.

e.Which independent variables are linearly related to weekly gross revenue? Explain.

f. Predict weekly gross revenue if a university spent $800 on direct mailing, $1200 on radio advertisements and $2000 on television commercials in a week.

Revenue	Direct	Radio	Television
15.98	1.05	1.35	1.55
21.59	1.29	2.25	1.97
25.47	0.96	1.79	1.64
16.02	1.51	1.73	1.73
16.58	1.30	1.71	1.61
20.10	1.06	1.61	1.82
17.49	0.86	1.62	1.97
22.53	0.78	2.20	1.61
23.98	1.20	1.77	1.13
18.96	0.83	1.17	1.77
24.64	1.01	1.76	2.04
19.52	1.34	1.81	1.63
19.97	0.55	2.25	1.93
18.86	1.06	1.98	1.63
22.79	0.90	1.54	2.27
20.38	1.88	1.15	1.45
16.51	0.51	1.19	1.93
18.32	0.53	1.75	1.44
16.04	1.21	1.01	1.46
18.91	0.90	1.68	1.66
20.09	0.97	1.72	1.59
19.83	1.01	1.72	1.42
18.42	1.29	1.47	2.05
21.99	1.35	1.94	2.28
20.57	1.07	2.31	1.77