In the owner of Showtime Movie Theaters, Inc., used multiple regression analysis to predict gross revenue (y) as a function of television advertising (x1) and newspaper advertising (x2). The estimated regression equation was
Weekly Gross Revenue ($1000s)
Television Advertising ($1000s)
Newspaper Advertising ($1000s)
96
5.0
1.5
90
2.0
95
4.0
92
2.5
3.0
3.3
94
3.5
2.3
4.2
= 83.2 +2.29x1 + 1.30x2
a. What is the gross revenue expected for a week when $3500 is spent on television advertising (x1 = 3.5) and $1800 is spent on newspaper advertising (x2 = 1.8)?
b. Provide a 95% confidence interval for the mean revenue of all weeks with the expenditures listed in part (a).
c. Provide a 95% prediction interval for next week’s revenue, assuming that the advertising expenditures will be allocated as in part (a).
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here