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    Regression Analysis Interpretations

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    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.

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    https://brainmass.com/statistics/regression-analysis/regression-analysis-interpretations-428263

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    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.

    $2.49

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