Do movies of different types have different rates of return on their budgets? He

Question

Do movies of different types have different rates of return on their budgets? Here's a regression of US Gross (existM) with an indicator variable Comedy that is 1 for comedies and 0 for adventure films. Complete parts (a) through (d). Dependent variable is: US Gross (SM) a) Write out the regression model b) In this regression, the variable Budget Comedy is an interaction term. How would you interpret the coefficient of Budget Comedy? A. Comedies cam more than adventure films for a given budget. B. The slope of the relationship between US Gross and Budget is loss stop for comedies than for adventure movies. C. The slope of the relationship between US Gross and Budget is more steep for comedies than to adventure movies. D. Comedies earn less than adventure films for a given budget. c) What null hypothesis can we test with the t-ratio for Budget Comedy? A. The slope of US Gross with Budget is the same for comedies and adventure films. B. The slope of US Gross with Budget is different for comedies and adventure films. C. Comedies do not earn the same amount as adventure films for a given budget. D. Comedies earn the same amount as adventure films for a given budget. d) Would you reject that hypothesis at alpha = 0.05? A. Yes, because the P-value is not less than the level of significance. B. No, because the P-value is less than the level of significance. C. Yes, because the P-value is less than the level of significance. D. No, because the P-value is not less than the level of significance.

Explanation / Answer

b) ans b) the slope of relation between USGross and Budget is less steep for comedy than adventure movies.

c) ans b) the slope of USGross with budget is different for comedies and adventure films.

d)ans c) yes, p value = 0.0326 hence p value less than level of significance

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.