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Regression Analysis Interpretations

See the attached file.
1) Blay mount Amateur Dramatic Society is staging a play and wants to know how much to spend on advertising, by getting a better understanding of the relationship between advertising and attendance. For the past 11 productions they have recorded their spending on advertising (in $) and the size of their audience and have performed a regression of attendance on spending (the resulting regression output is below). Unfortunately, none of the society members has taken a statistics (or Quantitative Analysis) course. To explain these regression results to the society, specifically address the following:
a) the overall statistical significance of the regression
b) the interpretation and the statistical significance of the intercept term
c) the statistical significance of the spending variables (with such a small data set you decide to use a significance level of 10% to determine statistical significance)
d) the relationship between advertising expenditures and attendance
i. If they were already planning to spend $500 on advertising for their next production, what would happen to attendance if they decided to spend a dollar more (i.e., the marginal benefit of advertising)? Round to the nearest whole person!
ii. If instead they were planning to spend only $100 on advertising for the upcoming production, what would happen to attendance if they decided to spend a dollar more? Round to the nearest whole person!
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.931647116
R Square 0.867966348
Adjusted R Square 0.834957935
Standard Error 88.75504356
Observations 11

ANOVA
df SS MS F Significance F
Regression 2 414280.3379 207140.2 26.29531 0.000303905
Residual 8 63019.66205 7877.458
Total 10 477300

Coefficients Standard Error t Stat P-value
Intercept -190.171507 113.6546959 -1.67324 0.132817
Spending (in $) 2.357834083 0.649257794 3.631584 0.00667
Spending Squared -0.00175563 0.000811289 -2.164 0.0624.

Attachments

Solution Preview

See the attached file.
1) Blay mount Amateur Dramatic Society is staging a play and wants to know how much to spend on advertising, by getting a better understanding of the relationship between advertising and attendance. For the past 11 productions they have recorded their spending on advertising (in $) and the size of their audience and have performed a regression of attendance on spending (the resulting regression output is below). Unfortunately, none of the society members has taken a statistics (or Quantitative Analysis) course. To explain these regression results to the society, specifically address the following:
a) the overall statistical significance of the regression
b) the interpretation and the statistical significance of the intercept term
c) the statistical significance of the spending variables (with such a small data set you decide to use a significance level of 10% to determine statistical significance)
d) the relationship between advertising expenditures and attendance
i. If they were already planning to spend $500 on advertising for their next production, what would happen to attendance if they decided ...

Solution Summary

Regression analysis interpretations are examined in the solution. The relationship between advertising expenditures and attendances are determined.

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