For a regression with USGross ($M) for movies as the response variable and movie

Question

For a regression with USGross ($M) for movies as the response variable and movie Budget ($M), Run Time (Minutes), and Stars (Reviewers' ratings average), as the explanatory variables, a histogram of leverages is shown. The movie with the highest leverage is King Kong, with a leverage of 0.189. If King Kong's USGross was $1 million more (and everything else remained the same), how much would the model's prediction of King Kong's USGross revenue change?

A. It would change 18.9%

B. It would change by $1.189M

C. It would change by $0.189M

D. It would change by $1M

E. It would change by 1.89%

Explanation / Answer

The leverage of King Kong's movie is 0.189, which is far away from the mean corresponding to x. The prediction will change by $1 M only.

D)

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