How does the cost of a movie depend on its length? Data on the cost (millions of dollars) and the running time (minutes) for major release films of 2005 are summarized in these plots and computer output

Dependent variable is Budget ($millions)
R-squared = 27.3%
s = 32.95 with 120 - 2 = 118 degrees of freedom
Variable Coefficient SE (Coeff) t-Ratio P-Value
Intercept -63.9981 17.12 -3.74 0.0003
RunTime 1.02648 0.1540 6.66 ‰¤0.0001

a) Explain in context what the regression says.
b) The intercept is negative. Discuss its value.
c) The output reports s = 32.95. Explain what that means in this context.
d) What's the value of the standard error of the slope of the regression line?
e) Explain what that means in this context.

Transcribed Image Text:

200 150 100 50 90 120 150 180 Run Time (mins 80 40 -40 30 60 90 120 Predicted 80 0 40 0.0 1.5 nscores