Q3. Showtime Movie Theaters\' data on weekly gross revenue ($1,000) as a functio
ID: 3065621 • Letter: Q
Question
Q3. Showtime Movie Theaters' data on weekly gross revenue ($1,000) as a function of television advertisement ($1,000) and newspaper advertisement ($1,000). Results are presented below. Source l 28.38 , 0019 9190 Ad) -squared 0.8866 64259 r(2. 5) Node1 1 23.4354078 Residual 1 2.06459221 2 11.7177035 Prob 412918442 R-squaced Total t 25.5 7 3.64285714 Root NSE WeeklyGroasRevenue 1 Coef. Std. Eee. (95% conf. Interval] 1.508561 3.071806 765994 2.125379 9.18433 87.27585 NewspaperadvertisenentI 1.300989 -3207016 4.06 0.010 cons13.23009 1.573869 52.88 0.000 9 a. Interpret each estimated coefficient from the above model. Avso when newspuperi a tvetisemenl increases b c'peche.ro increasesbg l. 5.001/ C $1000 EC375 Spring 2013 Dr.Lakongo 4Explanation / Answer
A)
With one unit increase in TV Advertisement, there is 2290$ increase in weekly gross revenue. With a unit increase in a newspaper advertisement, there is $1300 units increasing weekly gross revenue.
B)
Ho: the coefficient of TV Advertisement is not significant. Versus H1 the coefficient of TV Advertisement is significant. with t is equal to 7.53 and P value being less than 5% reject the null hypothesis at 5% level of significance. Hence there sufficient evidence to conclude that the coefficient of TV Advertisement is significant.
Ho: the coefficient of newspaper Advertisement is not significant. Versus H1 the coefficient of newspaper Advertisement is significant. with t is equal to 4.06 and P value being less than 5% reject the null hypothesis at 5% level of significance. Hence there sufficient evidence to conclude that the coefficient of newspaper Advertisement is significant.
C)
Ho: the model is not significant. Versus H1, The model is significant. With F equal to 28 and P value being less than 5% I reject the null hypothesis at 5% level of significance and conclude that the model is significant. Thus I can say that the predictive power of this model is good.
D)
The coefficient of determination, R square is 91.90. I can say that 91% of the variation in weekly gross revenue is explained by TV advertisement and newspaper advertisement. This percentage good and hence the fitted model is said to be a good fit to the data.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.