BoxOffice Example A movie production company in interested in predicting the fir

Question

BoxOffice Example A movie production company in interested in predicting the first year box office sales of a movie. They think the total production cost, total promotional costs, the total book sales and the genre affect the first year box office sales. . Use the BoxOffice spreadsheet. . Create dummy variables for genre! Perform a multiple regression analysis, using MegaStat First year boX office Total Promotional Costs Total Book Sales Total Prod Cost Genre 135.40 50.20 130.60 54.80 79.40 106.30 89.30 91.00 85.10 30.30 15.10 5.20 10.70 3.10 9.20 12.90 10.20 9.00 8.50 3.50 x2 7.70 2.10 8.40 2.90 3.70 5.80 4.50 7.60 5.10 1.20 x3 20.80 15.10 12.20 10.60 9.70 8.80 7.90 5.90 4.70 3.50 Not Horror Horror Not Horror Not Horror Not Horror Horror Not Horror Not Horror Horror Horror 10 14.8

Explanation / Answer

1). b0 = 7.498246, b1 = 3.788392, b2 = 7.278721, b3 = 0.763819, b4 = 2.313990

2). For b1= If all other variables are fixed, then for each change of 1 unit in total promotional sales and total book sales, First year box office changes 3.788392 units.

For b2= If all other variables are fixed, then for each change of 1 unit in total production sales and total book sales, First-year box office changes 7.278721 units.

For b3= If all other variables are fixed, then for each change of 1 unit in total production sales and total promotional sales, First-year box office changes 0.763819 units.

For b4= If all other variables are fixed, then for each change of 1 unit in total production sales, total book sales and total promotional sales, First-year box office changes 2.313990 units when Genre is Non-Horror.

3). First-year box sales = 7.498246 + 3.788392 * Total Production costs + 7.278721 * Total promotional sales + 0.763819 * Total Book sales + 2.313990 * Genre

4). R2 =  0.9418, All the given independent variables explain 94.18% of teh variability in Total Box Office sales

5). F-statistic: 37.39 on 4 and 5 DF, p-value: 0.0006435

6). T-statistic = 1.253 P-value = 0.2655. Not significant

7). CI = (-13.9733883, 18.601368). Yes, includes zero. This means, that the variable is not statistically significant.

8). First-year prediction = 7.498246 + 3.788392 * 10 + 7.278721 * 7 + 0.763819 * 6 + 2.313990 * Genre =944178817

9).

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