Dixie Showtime Movie Theaters, Inc., owns and operates a chainof cinemas in several markets in the southern U.S. The owners wouldlike to estimate weekly gross revenue as a function of advertisingexpenditures. Data for a sample of eight markets for a recent weekfollow.
| Market | Weekly Gross Revenue
($100s) | Television Advertising
($100s) | Newspaper Advertising
($100s) |
| Â Â Mobile | 101.3 | | 5 | 1.5 |
| Â Â Shreveport | 51.9 | | 3 | 3 |
| Â Â Jackson | 74.8 | | 4 | 1.5 |
| Â Â Birmingham | 126.2 | | 4.3 | 4.3 |
| Â Â Little Rock | 137.8 | | 3.6 | 4 |
| Â Â Biloxi | 101.4 | | 3.5 | 2.3 |
| Â Â New Orleans | 237.8 | | 5 | 8.4 |
| Â Â Baton Rouge | 219.6 | | 6.9 | 5.8 |
(a) Use the data to develop an estimated regression with theamount of television advertising as the independent variable. Let xrepresent the amount of television advertising. If required, roundyour answers to three decimal places. For subtractive or negativenumbers use a minus sign even if there is a + sign before theblank. (Example: -300)
(b) How much of the variation in the sample values of weeklygross revenue does the model in part (a) explain? If required,round your answer to two decimal places.
(c) Use the data to develop an estimated regression equationwith both television advertising and newspaper advertising as theindependent variables. Let x1 represent the amount of televisionadvertising. Let x2 represent the amount of newspaper advertising.If required, round your answers to three decimal places. Forsubtractive or negative numbers use a minus sign even if there is a+ sign before the blank. (Example: -300)
(d) How much of the variation in the sample values of weeklygross revenue does the model in part (c) explain? If required,round your answer to two decimal places. %
