Can someone please help me with this step by step? Problem 4-9 Dixie Showtime Mo
ID: 3203533 • Letter: C
Question
Can someone please help me with this step by step?
Problem 4-9
Dixie Showtime Movie Theaters, Inc., owns and operates a chain of cinemas in several markets in the southern U.S. The owners would like to estimate weekly gross revenue as a function of advertising expenditures. Data for a sample of eight markets for a recent week follow.
Market Weekly Gross Revenue
($100s) Television Advertising
($100s) Newspaper Advertising
($100s) Mobile 101.3 4.9 1.4 Shreveport 52.9 3.1 3.2 Jackson 75.8 4.2 1.5 Birmingham 127.2 4.5 4.3 Little Rock 137.8 3.6 4 Biloxi 102.4 3.5 2.3 New Orleans 236.8 5 8.4 Baton Rouge 220.6 6.8 5.9
Explanation / Answer
using televesion advertising as indpendent varaiable
the follwoing information is generated
(a) y=-52.78+41.49x
p-value=0.0364 of the t-statistic of x1 is is less than the alpha=0.05, so it is significant
(b) 54.52%
(c) the following information is generated using x1 and x2
y=-46.208+23.485x1+18.98x2,
since p-value of each of x1 and x2 is less than alpha=0.05, so these are significant. but beta0 is not signifianct.
it is reasonable as advertising has positive imapact on sales
(d) 91.46%
(e) adding x2 as independent variable is good idea as , this is significant effect on sales
(f) expenditure on television and newspapter advertisment , impact positively on sales.
Analysis of Variance Source DF Sum of Mean F Value Pr > F Squares Square Model 1 16423 16423 7.19 0.0364 Error 6 13701 2283.43403 Corrected Total 7 30123 Root MSE 47.78529 R-Square 0.5452 Dependent Mean 131.85 Adj R-Sq 0.4694 Coeff Var 36.24216 Parameter Estimates Variable DF Parameter Standard t Value P-value| Estimate Error Intercept 1 -52.78302 70.88886 -0.74 0.4847 x1 1 41.49057 15.47106 2.68 0.0364