a. Compute the percentage of variation in the commercial cost which is explained by the variation in the Nielsen Rating.

b. Write down the analysis of variance table for the regression of Y on X1, X2, X3. and X4. Using it and any other information provided above, test for the statistical significance of the overall regression equation and determine which variables should be included and which variables should be deleted (if any). In your answer, state the null hypothesis and alternate hypothesis of all tests performed, compute the test statistics and explain how you arrive at your conclusions (use the attached statistical tables).

c. For the regression model selected, compute the coefficient of determination and interpret this measure with respect to this application. Be specific in your interpretation.

d. Obtain a 95% prediction interval for the cost of a 30 second commercial for the prime time comedy program “TWO AND A HALF MEN”. This program has a Nielsen rating of 5.9 and 80% of the audience is in the 18-34 age range.

e. The non comedy television program, “NCIS”, has a rating of 8.2 and 30% of the audience is in the 18-34 age range. The comedy television program “TWO AND A HALF MEN”, has a rating of 5.9 and 80% of the audience is in the 18-34 age range. What is the estimated difference in the cost of a 30 second commercial for these two programs (both of these programs are shown during prime time).

f. Estimate the 25th percentile of the cost of a 30 second commercial for a non comedy prime time program with a Nielsen Rating of 5.0 and with 60% of the audience in the 18-34 age range.

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