Use gretl and the "Newton Movie Theaters" dataset to answer the following questions:

The owner of Newton Movie Theaters, Inc., would like to predict weekly gross revenue as a function of advertising expenditure. Historical data for a sample of eight weeks follow:

Weekly Gross Revenue ($1000s)

Television Advertising ($1000s)

Newspaper Advertising ($1000s)

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

a)Develop an estimated regression equation with the amount of television advertising as the independent variable

b)Develop an estimated regression equation with both television advertising and newspaper advertising as the independent variables

c)Is the estimated regression coefficient for television advertising expenditures the same in part (a) and in part (b)? Interpret the coefficient in each case

d)Predict weekly gross revenue for a week when $3500 is spent on television advertising and $1800 is spent on newspaper advertising.

e)Using the estimated regression equation in part (b), find and interpretand

f)When television advertising was the only independent variableand

Do you prefer the multiple regression results? Explain

For parts (g), (h) ,(i) use the estimated regression equation you developed in part (b):

g)Useto test the significance of. Shouldbe dropped from the model?

h)Useto test the significance of. Shouldbe dropped from the model?

i)Form a 95% confidence interval forand interpret the results.

Use gretl and the "Newton Movie Theaters" dataset to answer the following questions: The owner of Newton Movie Theaters, Inc., would like to predict weekly gross revenue as a function of advertising expenditure. Historical data for a sample of eight weeks follow: Weekly Gross Revenue Television Advertising ($1000s) Newspaper Advertising ($1000s ($1000s) 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 3.5 2.3 94 2.5 4.2 94 3.0 2.5 i) Develop an estimated regression equation with the amount of television advertising as the independent variable b) Develop an estimated regression equation with both television advertising and newspaper advertising as the independent variables Is the estimated regression coefficient for television advertising expenditures the same in part (a) and in part (b)? Interpret the coefficient in each case d) Predict weekly gross revenue for a week when $3500 is spent on television advertising and $1800 is spent on newspaper advertising. e) Using the estimated regression equation in part (b), find and interpret R2 and Ra f) When television advertising was the only independent variable R2 = .653 and Ra = .595 Do you prefer the multiple regression results? Explain For parts (g), (h) ,(i) use the estimated regression equation you developed in part (b): Use a = 0.05 to test the significance of 1- Should x, be dropped from the model? h) Use a = 0.05 to test the significance of 82. Should x2 be dropped from the model? Form a 95% confidence interval for , and interpret the results