Question

# The owner of Showtime Movie Theaters, Inc., used multiple regression analysis to predict gross revenue (y)...

The owner of Showtime Movie Theaters, Inc., used multiple regression analysis to predict gross revenue (y) as a function of television advertising (x1) and newspaper advertising (x2).

 Weekly Gross Revenue ( s) Televison Advertising ( s) Newspaper Advertising ( s) 97 5 2.5 91 2 2 96 5 2.5 93 2.5 3.5 96 4 4.3 95 4.5 2.3 95 3.5 5.2 95 4 3.5

The estimated regression equation was y^ = 86.7 + 1.66x1 - .54x2

The computer solution provided .

a. Compute R2 (to 3 decimals).

Compute Ra2 (to 3 decimals).

b. When television advertising was the only independent variable, R2 = .86 and Ra2 = .837 . Are the multiple regression analysis results preferable?

[- Select your answer -] No, because less variability is explained when both independent variables are used / Yes, because greater variability is explained when both independent variables are used

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