The owner of Showtime Theaters Inc., would like to estimate weekly gross revenue as a function of advertising expenditures. Historical data is given in the data file.
a) We want to use the method of least squares to compute an estimated regression line. Which is the dependent variable and which are the independent variables? Explain.
b) What is the equation?
c) What is the predicted annual gross revenue if Showtime Inc., spends $6,000 on television advertising and $3000 on Newspaper advertising? Will the prediction be accurate? Explain
d) What do the coefficients of the estimated regression line indicate? Explain.
e) Compute the coefficient of determination (R2) and fully interpret its meaning.
f) Is the model significant?
g) Are the coefficients significant?