The owner of Showtime Movie Theaters, Inc., 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 Newspaper Advertising Advertising ($1,000s) ($1,000s) 96 5.0 1.5 90 2.0 2.0 95 4.0 1.5 92 2.5 2.5 95 3.0 3.3 94 3.5 2.3 94 2.5 4.2 94 3.0 2.5 The owner then used multiple regression analysis to predict gross revenue (y), in thousands of dollars, as a function of television advertising (x₁), in thousands of dollars, and newspaper advertising (x2), in thousands of dollars. The estimated regression equation was ŷ = 83.2 + 2.29x₁ + 1.30x2. (a) What is the gross revenue (in dollars) expected for a week when $2,500 is spent on television advertising (x₁ = 2.5) and $4,200 is spent on newspaper advertising (x2 = 4.2)? (Round your answer to the nearest dollar.) $ 94385

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
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The owner of Showtime Movie Theaters, Inc., 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 Newspaper
Advertising Advertising
($1,000s) ($1,000s)
96
5.0
1.5
90
2.0
2.0
95
4.0
1.5
92
2.5
2.5
95
3.0
3.3
94
3.5
2.3
94
2.5
4.2
94
3.0
2.5
The owner then used multiple regression analysis to predict gross revenue (y), in thousands of dollars, as a function of television advertising (x₁), in thousands of dollars, and newspaper advertising (x2), in thousands of dollars. The estimated regression equation was
ŷ = 83.2 + 2.29x₁ + 1.30x2.
(a) What is the gross revenue (in dollars) expected for a week when $2,500 is spent on television advertising (x₁ = 2.5) and $4,200 is spent on newspaper advertising (x2 = 4.2)? (Round your answer to the nearest dollar.)
$ 94385
Transcribed Image Text:The owner of Showtime Movie Theaters, Inc., 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 Newspaper Advertising Advertising ($1,000s) ($1,000s) 96 5.0 1.5 90 2.0 2.0 95 4.0 1.5 92 2.5 2.5 95 3.0 3.3 94 3.5 2.3 94 2.5 4.2 94 3.0 2.5 The owner then used multiple regression analysis to predict gross revenue (y), in thousands of dollars, as a function of television advertising (x₁), in thousands of dollars, and newspaper advertising (x2), in thousands of dollars. The estimated regression equation was ŷ = 83.2 + 2.29x₁ + 1.30x2. (a) What is the gross revenue (in dollars) expected for a week when $2,500 is spent on television advertising (x₁ = 2.5) and $4,200 is spent on newspaper advertising (x2 = 4.2)? (Round your answer to the nearest dollar.) $ 94385
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