Dixie Showtime Movie Theaters, Inc., owns and operates a chain of cinemas in sev
ID: 3203718 • Letter: D
Question
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 102.5 5.1 1.6 Shreveport 52.7 3.2 3 Jackson 75.8 4 1.5 Birmingham 127.8 4.3 4 Little Rock 137.8 3.5 4.3 Biloxi 101.4 3.6 2.3 New Orleans 237.8 5 8.4 Baton Rouge 219.6 6.9 5.8
Explanation / Answer
a)using minita,
Regression Analysis: Weekly Gross Revenue versus Television Advertising
Analysis of Variance
Source DF Adj SS Adj MS F-Value P-Value
Regression 1 15714 15714 6.52 0.043
Television Advertising 1 15714 15714 6.52 0.043
Error 6 14458 2410
Total 7 30172
Model Summary
S R-sq R-sq(adj) R-sq(pred)
49.0879 52.08% 44.10% 26.92%
Coefficients
Term Coef SE Coef T-Value P-Value VIF
Constant -43.3 70.8 -0.61 0.563
Television Advertising 39.4 15.4 2.55 0.043 1.00
Regression Equation
Weekly Gross Revenue = -43.3 + 39.4 Television Advertising
here in coefficint table,Television Advertising is 0.043 which less than alpha 0.05 so we conclude there is significant relationship between television advertising and weekly gross revenue at the 0.05 level of significance
b) if you see in table there R squared value - 50.08%
c)
Regression Analysis: Weekly Gross Rev versus Television Adver, Newspaper Advert
Analysis of Variance
Source DF Adj SS Adj MS F-Value P-Value
Regression 2 28232 14116.1 36.38 0.001
Television Advertising 1 3881 3881.4 10.00 0.025
Newspaper Advertising 1 12518 12517.7 32.26 0.002
Error 5 1940 388.0
Total 7 30172
Model Summary
S R-sq R-sq(adj) R-sq(pred)
19.6977 93.57% 91.00% 87.02%
Coefficients
Term Coef SE Coef T-Value P-Value VIF
Constant -43.2 28.4 -1.52 0.188
Television Advertising 21.86 6.91 3.16 0.025 1.25
Newspaper Advertising 20.16 3.55 5.68 0.002 1.25
Regression Equation
Weekly Gross Revenue = -43.2 + 21.86 Television Advertising + 20.16 Newspaper Advertising
here the p-values for both independant variable are less than or equal to alpha 0.05, conclude that the effect is significant
d) R-squred value = 93.57% .the variation in the sample values of weekly gross revenue does the model.