Problem 7-9 Dixie Showtime Movie Theaters, Inc., owns andoperates a chain of cinemas in several markets in the southern U.S.The owners would like to estimate weekly gross revenue as afunction 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 52.73.2 3 Jackson 75.8 4 1.5 Birmingham 127.8 4.3 4 Little Rock 137.83.5 4.3 Biloxi 101.4 3.6 2.3 New Orleans 237.8 5 8.4 Baton Rouge219.6 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) = + x Test for a significant relationshipbetween television advertising and weekly gross revenue at the 0.05level of significance. What is the interpretation of thisrelationship? The input in the box below will not be graded, butmay be reviewed and considered by your instructor.

(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) = + x1 + x2 Test whethereach of the regression parameters β0, β1, and β2 is equal to zeroat a 0.05 level of significance. What are the correctinterpretations of the estimated regression parameters? Are theseinterpretations reasonable?

(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. % (e) Given the results inpart (a) and part (c), what should your next step be? Explain. (f)What are the managerial implications of these results?