Movie companies need to predict the gross receipts of individual movies after a

Question

Movie companies need to predict the gross receipts of individual movies after a movie has debuted. The accompanying results are the first weekend gross, the national gross, and the worldwide gross (in millions of dollars) of six movies. Complete parts (a) through (d) below. Click the icon to view the gross receipts of the six movies a. Compute the covariance between first weekend gross and national gross, first weekend gross and worldwide gross, and national gross and worldwide gross Compute the covariance between first weekend gross and national gross cov(X,Y)(Round to four decimal places as needed.) Compute the covariance between first weekend gross and worldwide gross cov(X,Y)(Round to four decimal places as needed.) Compute the covariance between national gross and worldwide gross cov(X,Y)(Round to four decimal places as needed.) b. Compute the coeficient of correlation between first weekend gross and national gross, first weekend gross and worldwide gross, and national gross and worldwide gross Compute the coefficient of correlation between first weekend gross and national gross r= | | (Round to four decimal places as needed.) Compute the coefficient of correlation between first weekend gross and worldwide gross r= | | (Round to four decimal places as needed.) Gross receipts of six movies First Weekend Gross National Worldwide Title Movie A 90.474 317.685 976.276 Movie B Movie C 93.381 249.752 795.194 Movie D 02.902 290.301 896.307 Movie E 77.223 292.195 938.279 Movie F77.688 301.467 934.209 Gross 88.462 261.981 878.045 Click to select your answer(s). Save for Later

Explanation / Answer

Solution:-

By Using MS-Excel

Notation:- FW-First Weekend Gross, NG- National Gross, WG-Worldwide Gross

array1- all values in First Weekend Gross

array2- all values in National Gross

  array3- all values in Worldwide Gross

(a) and (b)

Above three value of variance to corrsponding gross computing by command 1) "VARP(array1)"

2)  "VARP(array2)"

3) "VARP(array3)"

For covariance, computing by command 1) "COVAR(array1,array2)"  

2) "COVAR(array1,array3)"

3) "COVAR(array2,array3)"

For correlation, computing by command 1) "CORREL(array1,array2)"  

2) "CORREL(array1,array3)"

3) "CORREL(array2,array3)"

(c) Option (A) is correct

The correlation coefficient is more valueable for expressing the relationship between first weekend gross,national gross and worldwide gross. It can prove that there is causaation effect between first weekend gross,national gross and worldwide gross.

(d) Option (A) is correct.

There is weak negative linear relationship between first weekend gross and both national gross and worldwide gross. There is strong positive linear relationship between  national gross and worldwide gross.

  

Title First Weekend National Gross Worldwide Gross Movie A 91.474 317.685 976.276 Movie B 88.462 261.981 878.045 Movie C 93.381 249.752 795.194 Movie D 102.902 290.301 896.307 Movie E 77.223 292.195 938.279 Movie F 77.688 301.467 934.209 Variance 80.69252 531.6218 3312.941   Covariance(FW,NG) = -42.8122 Covariance(FW,WG) = -189.834 Covariance(NG,WG) = 1250.251 Correlation(FW,NG) = -0.2067 Correlation(FW,WG) = -0.36716 Correlation(NG,WG) = 0.942083

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