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Restaurant Advertising and Revenue. Data on advertising expenditures and revenue (in thousands of dollars) for the Four Seasons Restaurant follow. a. Let x equal advertising expenditures and y equal revenue. Use the method of least squares to develop a straight line approximation of the relationship between the two variables. b. Test whether revenue and advertising expenditures are related at a .05 level of significance. c. Prepare a residual plot of y-ŷ versus ŷ. Use the result from part (a) to
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SOLVED:Exercise 5 gave the following data on weekly gross revenue 1000, television advertising expenditures (000s), and newspaper advertising expenditures (000s) for Showtime Movie Theaters. a. Find an estimated regression equation relating weekly gross revenue to television advertising expenditures and newspaper advertising expenditures. b. Plot the standardized residuals against ŷ. Does the residual plot support the assumptions about ϵ? Explain. c. Check for any outliers in these data. What ar
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