Listed below are paired data consisting of movie budget amounts and the amounts

Question

Listed below are paired data consisting of movie budget amounts and the amounts that the movies grossed. Find the regression equation, letting the budget be the predictor (x)variable. Find the best predicted amount that a movie will gross if its budget is $120 million. Use a significance level 01a= 0.05 Budget (S)in Milions Gross (5) in Millions 18 112 69 53 123 68 58 122 15 10 149 10 127 24 109 62 114 122 98 54 40 16 292 39 Click the icon to view the critical values of the Pearson correlation coemoent The regression equation is y- (Round to one decimal place as needed.) The best predicted gross for a movie with a $120 million budget is S milion (Round to one decimal place as needed.)

Explanation / Answer

The statistical software output for this problem is:

Simple linear regression results:
Dependent Variable: Gross ($) (y)
Independent Variable: Budget (x)
Gross ($) (y) = 20.873916 + 1.2589842 Budget (x)
Sample size: 15
R (correlation coefficient) = 0.81214364
R-sq = 0.6595773
Estimate of error standard deviation: 43.909838

Parameter estimates:

Analysis of variance table for regression model:

Predicted values:

Hence,

Regression equation is:

y = 20.9 + 1.3 x

Best predicted gross is $172.0 million

Parameter Estimate Std. Err. Alternative DF T-Stat P-value Intercept 20.873916 19.300834 0 13 1.0815033 0.2991 Slope 1.2589842 0.2508563 0 13 5.0187466 0.0002

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