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Linear Regression Continued Find: r, r 2 , p-value Determine if the is significa

ID: 3297622 • Letter: L

Question

Linear Regression Continued

Find: r, r2, p-value

Determine if the is significant positive or negative linear correlation using the p-value method

Find the regression equation. Make the prediction for and find residuals for data points identified in problems.

Explain b1 (slope)

Give CV and test for correlation using the traditional method.

The following is the budget and gross for the 10 movies with the largest budgets.

Round all data to the nearest million dollars (123,456,789 would be 123).

Find the residuals for Avatar, John Carter, and The Hobbit Desolation of Smaug.

Use = 0.05.

Release Date

Movie

Budget

Gross

1

12/18/2009

Avatar

$425,000,000

$760,507,625

2

5/24/2007

Pirates of the Caribbean: At World's End

$300,000,000

$309,420,425

3

7/20/2012

The Dark Knight Rises

$275,000,000

$448,139,099

4

7/2/2013

The Lone Ranger

$275,000,000

$89,289,910

5

3/9/2012

John Carter

$275,000,000

$73,058,679

6

11/24/2010

Tangled

$260,000,000

$200,821,936

7

5/4/2007

Spider-Man 3

$258,000,000

$336,530,303

8

12/14/2012

The Hobbit: An Unexpected Journey

$250,000,000

$303,003,568

9

7/15/2009

Harry Potter and the Half-Blood Prince

$250,000,000

$301,959,197

10

12/13/2013

The Hobbit: The Desolation of Smaug

$250,000,000

$258,366,855

The following is the area (in thousands of square miles) and population (in millions of people) of the states in the US South in 2000, according to:

http://www.demographia.com/db-statedens.htm

Find the residuals for Florida, Mississippi, and Georgia. Use = 0.05

State

Area

Population

Alabama

51

4.4

Arkansas

52

2.7

Florida

54

16

Georgia

58

8.2

Kentucky

40

4

Louisiana

44

4.5

Mississippi

47

2.8

Tennessee

41

5.7

Refer to the Excel data set for this assignment. The price of gas, in dollars per gallon, is compared to years. Do the hypothesis test both the prices adjusted for inflation and the price not adjusted for inflation to see if they have a significant correlation to time. This is a time series. Compare the two results and discuss their cause and consequence.

Find residuals for 1930, 1979, 1990, and 2012. Use = 0.05. Data is from:

Release Date

Movie

Budget

Gross

1

12/18/2009

Avatar

$425,000,000

$760,507,625

2

5/24/2007

Pirates of the Caribbean: At World's End

$300,000,000

$309,420,425

3

7/20/2012

The Dark Knight Rises

$275,000,000

$448,139,099

4

7/2/2013

The Lone Ranger

$275,000,000

$89,289,910

5

3/9/2012

John Carter

$275,000,000

$73,058,679

6

11/24/2010

Tangled

$260,000,000

$200,821,936

7

5/4/2007

Spider-Man 3

$258,000,000

$336,530,303

8

12/14/2012

The Hobbit: An Unexpected Journey

$250,000,000

$303,003,568

9

7/15/2009

Harry Potter and the Half-Blood Prince

$250,000,000

$301,959,197

10

12/13/2013

The Hobbit: The Desolation of Smaug

$250,000,000

$258,366,855

Explanation / Answer

1)

Linear Regression Continued

Find: r, r2, p-value

r = 0.765

r^2 = 0.5856

p-value =

Determine if the is significant positive or negative linear correlation using the p-value method

p-value = 0.0099 < 0.05 , hence there is significant correlation

Find the regression equation. Make the prediction for and find residuals for data points identified in problems.

y^ = -591851604.8 + 3.111 * budget

Explain b1 (slope)

b1 = 3.111

this means , on average if we increase our budget by 1 unit , then gross will increase by b1 units that is 3.1111 units

2)

Please ask rest questions again

SUMMARY OUTPUT Regression Statistics Multiple R 0.765246157 R Square 0.58560168 Adjusted R Square 0.53380189 Standard Error 146451805.3 Observations 10 ANOVA df SS MS F Significance F Regression 1 2.42473E+17 2.42E+17 11.3051 0.009898 Residual 8 1.71585E+17 2.14E+16 Total 9 4.14058E+17 Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Intercept -591851604.8 264827099.6 -2.23486 0.055872 -1.2E+09 18840782 -1.2E+09 Budget 3.111101304 0.925288139 3.362305 0.009898 0.977383 5.24482 0.977383
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