Question

# The owner of a movie theater company would like to predict weekly gross revenue as a...

The owner of a movie theater company would like to predict weekly gross revenue as a function of advertising expenditures. Historical data for a sample of eight weeks follow.

Weekly
Gross
Revenue
(\$1,000s)
Television
(\$1,000s)
Newspaper
(\$1,000s)
96 5 1.5
90 2 2
95 4 1.5
93 2.5 2.5
95 3 3.3
94 3.5 2.2
94 2.5 4.1
94 3 2.5

(a)

Use α = 0.01 to test the hypotheses

 H0: β1 = β2 = 0 Ha: β1 and/or β2 is not equal to zero

for the model

y = β0 + β1x1 + β2x2 + ε,

where

Find the value of the test statistic. (Round your answer to two decimal places.)

b) Use α = 0.05 to test the significance of β1.

Find the value of the test statistic. (Round your answer to two decimal places.)

c) Use α = 0.05 to test the significance of β2.

Find the value of the test statistic. (Round your answer to two decimal places.)

p-value =

using excel: data-data analysis: regression :below is the output:

 SUMMARY OUTPUT Regression Statistics Multiple R 0.9501 R Square 0.9026 Adjusted R Square 0.8637 Standard Error 0.6674 Observations 8.0000 ANOVA df SS MS F Significance F Regression 2.0000 20.6480 10.3240 23.1796 0.0030 Residual 5.0000 2.2270 0.4454 Total 7.0000 22.8750 Coefficients Standard Error t Stat P-value Intercept 83.8448 1.6612 50.4721 0.0000 x1 2.1644 0.3180 6.8069 0.0010 x2 1.2780 0.3442 3.7130 0.0138

a)

value of the test statistic F =23.18

p value =0.003

b)

value of the test statistic =6.81

p value =0.001

c)

value of the test statistic =3.71

p value =0.014