I need help solving this problem Its super confusing to me a
I need help solving this problem. It\'s super confusing to me at the moment...
The manager of Showtime Movie Theaters Inc. Boardman, would like to estimate the effects of advertising expenditures on weekly gross revenue using regression analysis. The manager hires you to do the analysis for her. The following historical data for a sample of eight weeks are given to you: Explain to the managers the causal relationship between Weekly Gross Sales. TV Advertising and Newspaper Advertising. In your statement identify the DV (call it Y) and the IVs (call them X_1 and X_2, respectively). Formulate the multiple LRM that relates Y to X_1 and X_2. What are your expected signs of the regression parameters? Use Excel to estimate the model that you have specified in part 1b above. Are the estimated signs consistent with you expectation on the basis of theory? Please be specific. Use the results in your Excel output to answer these questions Interpret the coefficient of determination estimate in the context of this problem. Interpret the meaning of the estimates for \'a\', \'b_1, and \'b_2\' Is the multiple LRM you formulated m part 1b statistically significant? Verify at 5% level of significance. Suppose the owner plans to spend $3000 a week on TV advertising and $1800 a week on newspaper advertising, how much should the owner expect to gross in revenue for a week using the simple regression model, and using the multiple regression model? Which medium of advertising is relatively more important in predicting gross revenue and why?Solution
