Mathematics, 15.07.2020 01:01 ligittiger12806
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 Television Advertising Newspaper Advertising 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 4.0 Biloxi 102.4 3.5 2.3 New Orleans 236.8 5.0 8.4 Baton Rouge 220.6 6.8 5.9 A) Use the data to develop an estimated regression equation with the amount of television advertising as the independent variable. Let x represent the amount of television advertising. B) How much of the variation in the sample values of weekly gross revenue does the model in part (a) explain?C) Use the data to develop an estimated regression equation with both television advertising and newspaper advertising as the independent variables. D) How much of the variation in the sample values of weekly gross revenue does the model in part (c) explain?E) Given the results in part (a) and part (c), what should your next step be? Explain. F) What are the managerial implications of these results?
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