The owner of Showtime Movie Theaters, Inc., would like to predict weekly gross revenue as a function of advertising expenditures. A. Develop an estimated regression equation with the amount of television advertising as the independent variable (to 2 decimals). Revenue = + TVAdv
B. Develop an estimated regression equation with both television advertising and newspaper advertising as the independent variables (to 2 decimals). Revenue = + TVAdv + NewsAdv
C. Is the estimated regression equation coefficient for television advertising expenditures the same in part (a) and in part (b)? [Yes, the coefficients are the same] or [No, the coefficients are not the same]
D. Predict weekly gross revenue for a week when $4.7 thousand is spent on television advertising and $3.5 thousand is spent on newspaper advertising (to 2 decimals)? $ (in thousands)
Weekly Gross Television Newspaper
Revenue Advertising Advertising
($1000s) ($1000s) (1000s)
97 6 1.5
90 2 2
95 5 1.5
92 2.5 2.5
95 4 3.3
94 3.5 2.3
95 2.5 4.2
94 4 2.5