Again, suppose you work for AMC Cinemas (a national chain of movie theaters). You try to forecast future revenue from mo
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Again, suppose you work for AMC Cinemas (a national chain of movie theaters). You try to forecast future revenue from mo
Again, suppose you work for AMC Cinemas (a national chain ofmovie theaters). You try to forecast future revenue from movieticket sales based on the number of competing theaters within 15miles, the ticket price at the nearest competitor, advertisingexpenditures, the local unemployment rate, and average outdoortemperature. Answer the following questions. (a) Suppose that,instead of movie ticket sales, you use the same independentvariables to predict beverage sales at theaters. Would you expect aregression model for beverage sales to have a higher, lower, orsimilar R-square value in comparison to the regression model formovie ticket sales? Explain the reasoning behind your expectation.(6 points) (b) Suppose your hypothesis tests use a 5% significancelevel in all hypothesis tests. In words, interpret the literalmeaning of a 5% significance level. (4 points)