The owner of Showtime Movie Theaters, Inc., would like to predict weekly gross r

Question

The owner of Showtime Movie Theaters, Inc., would like to predict weekly gross revenue as a function of advertising expenditures. Historical data for a sample of eight weeks follow Weekly Gross Televison Newspaper Advertising Advertising Revenue ($1000s) 97 91 96 93 95 95 94 95 (1o00s) (s1000s) 6 1.5 1.5 2.5 4.3 2.3 4.2 2.5 3.5 4.5 2.5 4 a. Use o = .01 to test the hypotheses Ha: 1 and/or is not equal to zero for the model y = 0 + AX1 + 2X2 + , where x,-television advertising ($1000s) x2 = newspaper advertising ($1000s) Compute the Ftest statistic (to 2 decimals)

Explanation / Answer

a)

44.22

0.00066 and hence reject the null hypothesis

b)

8.49

0.00037

Do not reject the null hypothesis

No

c)

4.53

0.0062

Do not reject the null hypothesis

No

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