Find out sample correlation coefficient between all

Reference no: EM13392163

The owner of Showtime Movie Theaters, Inc. would like to estimate weekly gross revenue as a function of advertising expenditures. Historical data for a sample of eight weeks follow.

Weekly Gross Television Newspaper Radio

Revenue Advertising Advertising Advertising

($1000s) ($1000s) ($1000s) ($1000s)

96 5 1.5 0.3

90 2 2 0.2

95 4 1.5 0.3

92 2.5 2.5 0.1

95 3 3.3 0.4

94 3.5 2.3 0.4

94 2.5 4.2 0.3

94 3 2.5 0.3

a) Develop an estimated regression equation in Excel with the amount of television advertising as the independent variable

b) Develop an estimated regression equation in Excel with both television advertising and newspaper advertising as the independent variables

c) Develop an estimated regression equation in Excel with all three independent variables: television advertising, newspaper advertising, and radio advertising

d) Is the estimated regression equation coefficient for television advertising expenditures the same in par a), in part b) and in part c)? Interpret the coefficient in each case

e) Obtain and compare the multiple coefficient of determination and the adjusted multiple coefficient of determination for parts a), b) and c). How does the coefficient of determination changes as a result of adding more independent variables in the equation?

f) What is the estimate of the weekly gross revenue for a week when $3500 is spent on television advertising, $1800 is spent on newspaper advertising, and $350 in radio advertising?

g) Use the F test to determine the overall significance of the relationship. What is the conclusion at the .05 level of significance?

h) Use the t test to determine the significance of each independent variable. What is your conclusion at the .05 level of significance?

i) Determine the sample correlation coefficient between all possible pairs of independent variables to measure multicollinearity. Is there any value high enough to predict any potential problem in the regression model? Explain.

Reference no: EM13392163

Questions Cloud

Discover some of the possible survival organizational : the health care industry should anticipate and monitor trends which could possibly influence its overall survival.

Fnd c1 and c2 how would your answer change if u logc1 : in the two-period consumption model suppose that y1 100 and y2 210. there is no initial wealth. if the utility

Examine the impact of technology on how health care : 1 analyze the impact of technology on how health care services are delivered. the impact of technology on employee

Assume a company paid dividend of 15 cents on its ordinary : suppose a company paid dividend of 15 cents on its ordinary share of n1.50 each. the company expected to grow its

Find out sample correlation coefficient between all : the owner of showtime movie theaters inc. would like to estimate weekly gross revenue as a function of advertising

Explore the career trends of health professionals in : analyze the dual role of a manager and healthcare professional. examine challenges that the health professional

Seasons manufacturing manufactures a product with a unit : seasons manufacturing manufactures a product with a unit variable cost of 100 and a unit sales price of 176. fixed

Assume caribbean government facing budget deficits asked : suppose a caribbean government facing budget deficits asked their economic advisers to solve the following problem they

As an administrator address the challenges of employee : as an administrator address the challenges of employee recruitment and retention of health care professionals.

User Account

All Pages