In exercise 5, the owner of Showtime Movie Theaters, Inc., used multiple regression analysis to predict weekly gross revenue (y) as a function of television advertising (x1) and newspaper advertising (x2). The estimated regression equation was
y = 83.2 + 2.29x1 + 1.30x2
a. What is the gross revenue expected for a week when $3,500 is spent on television advertising (x1 = 3.5) and $1,800 is spent on newspaper advertising (x2 = 1.8)?
b. Provide a 95% confidence interval for the mean revenue of all weeks with the expenditures listed in part (a).
c. Provide a 95% prediction interval for next week’s revenue, assuming that the advertising expenditures will be allocated as in part (a).