Description
Name__________________________
QSO 510 Quantitative Analysis for Decision Making
Week 8 Homework Assignment
Multiple Linear Regression Analysis
Instructions
1.This assignment is to be done individually. This is not a group assignment.
2.Refer to the Butler Class Example posted on Brightspace for help in completing this assignment.
3.Download the Week 8 Homework data file and do your Excel work in the data file.
4.Word-process your answers within this document. Copy and paste your Excel work in this document as required.
5.Please submit this homework assignment through the Week 8 Homework Submission folder on Brightspace.
Multiple Camm2 Problem 7-9
Dixie Showtime Movie Theaters, Inc., owns and operates a chain of cinemas in several markets in the southern United States. The owners would like to estimate weekly gross revenue as a function of advertising expenditures. Data for a sample of eight markets for a recent week follow. The complete data are in the Week 8 Homework data file posted on the Brightspace.
|
Market |
Weekly Gross Revenue ($100s) |
Television Advertising ($100s) |
Newspaper Advertising ($100s) |
|
Mobile |
101.3 |
5.0 |
1.5 |
|
Shreveport |
51.9 |
3.0 |
3.0 |
|
Jackson |
74.8 |
4.0 |
1.5 |
|
Birmingham |
126.2 |
4.3 |
4.3 |
|
Little Rock |
137.8 |
3.6 |
4.0 |
|
Biloxi |
101.4 |
3.5 |
2.3 |
|
New Orleans |
237.8 |
5.0 |
8.4 |
|
Baton Rouge |
219.6 |
6.9 |
5.8 |
Use Weekly Gross Revenue (in $100s) as the dependent variable.
(a)Use the data contained in the Week 8 Homework data file to develop an estimated regression equation with the amount of television advertising as the independent variable. Copy and paste the regression output in the space below.
(b)Write the equation using the relevant numbers from the regression output. Define the symbols before you use them in the equation. Provide a clear and complete interpretation of the regression coefficients b0 and b1.
(c)What is the value of r2? Provide a clear and complete interpretation of the value of r2.
(d)Develop an estimated regression equation with both television advertising and newspaper advertising as the independent variables. Copy and paste the regression output in the space below.
(e)Write the equation using the relevant numbers from the regression output. Define the symbols before you use them in the equation. Define the symbols before you use them in the equation. Provide a clear and complete interpretation of the regression coefficients b0, b1 and b2.
(f)What is the value of R2? Provide a clear and complete interpretation of the value of R2.
(g)If in a certain market, the company wants to spend $5 million in newspaper advertising and $5 million in Television advertising, what weekly gross revenue can they expect? Note: Show all steps and calculations.
(h)What are the managerial implications of these results? Given the above results, what should your next step be? Give reasons for your answer.
