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 Revenue ($1000s) Televison Advertising ($1000s) Newspaper Advertising ($1000s) 97 5 1.5 90 2 3 96 4 2.5 92 2.5 2.5 95 3 3.3 95 3.5 2.3 95 2.5 4.2 95 3 3.5 Use α = .01 to test the hypotheses for the model y = β0 + β1x1 + β2x2 + ε. Compute the F test statistic (to 2 decimals). Use F table. What is the p-value? What is your conclusion? Use α = .05 to test the significance of β1. Compute the t test statistic (to 2 decimals). Use t table. What is the p-value? What is your conclusion? Should x1 be dropped from the model? Use α = .05 to test the significance of β2. Compute the t test statistic (to 2 decimals). Use t table. What is the p-value? What is your conclusion? Should x2 be dropped from the model?

          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 Revenue ($1000s) Televison Advertising ($1000s) Newspaper Advertising ($1000s) 
97 5 1.5 
90 2 3 
96 4 2.5 
92 2.5 2.5
95 3 3.3 
95 3.5 2.3 
95 2.5 4.2 
95 3 3.5 

Use α = .01 to test the hypotheses for the model y = β0 + β1x1 + β2x2 + ε. Compute the F test statistic (to 2 decimals). Use F table. What is the p-value? What is your conclusion? 

Use α = .05 to test the significance of β1. Compute the t test statistic (to 2 decimals). Use t table. What is the p-value? What is your conclusion? Should x1 be dropped from the model? 

Use α = .05 to test the significance of β2. Compute the t test statistic (to 2 decimals). Use t table. What is the p-value? What is your conclusion? Should x2 be dropped from the model?

Added by Matthew S.

Question

Please give Ace some feedback