The National Association of Theatre Owners is the largest exhibition trade organization in the world, representing more than 26,000 movie screens in all 50 states and in more than 20 countries worldwide.

Its membership includes the largest cinema chains and hundreds of independent theater owners. It publishes statistics concerning the movie sector of the economy. The file titled Flicks contains data on total U.S. box office grosses ($billion), total number of admissions (billion), average U.S. ticket price

($), and number of movie screens for the years 1987–2015 (source: National Association of Theatre Owners, www.natoonline.org, Feb. 2016). One concern is the effect the increasing ticket prices have on the number of individuals who go to the theaters to view movies.

a. Construct a scatter plot depicting the relationship between the total number of admissions and the U.S. ticket price. Test to determine whether the overall model is significant, and also test whether the independent variables have significant coefficients. Test at the alpha = 0.01 level.

b. Create a new variable, the square root of price, and run the model with price and the new variable as the independent variables. Obtain the estimated regression equation.