Question: The Ritz Theater uses the regression analysis method to estimate fixed cost per month and variable costs per ticket sold. Summary output of regression statistics
The Ritz Theater uses the regression analysis method to estimate fixed cost per month and variable costs per ticket sold. Summary output of regression statistics is provided below: SUMMARY OUTPUT Regression Statistics Multiple R 0.825358 R Square 0.681216 Adj RSquare 0.656695 Stand Error 39.35892 Observations 15 ANOVA df SS MS F Sig E Regression Residual 1 43,034.7 43,034.71 27.780017 0.000151 13 20,138.6 1,549.12 Total 14 63.173.3 Lower Upper Lower Upper 95% 95% 95% 487.3612 Coefficients Std Error tStat P-value 95% Intercept 2621.21 101.8073 2.626725 0.020917 47.478460 487.3612 47.478460 X Variable 35.58 6.1023 5.270675 0.000151 18.980154 45.3467 18.980154 45.3467 The company is considering an advertising campaign that is expected to increase annual sales by 3,000 tickets. Tickets are sold for $120 each. Ignoring the cost of the advertising campaign, what is the expected increase in profit associated with the advertising campaign? $253.200 $250,630 $260,000 $265.000 O$270,000
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