Movie budgets. 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 in one recent year are summarized in these plots and computer output:

Dependent variable is: Budget($M)
R-squared = 15.4%
s = 32.95 with 120 - 2 = 118 degrees of freedom Variable Coefficient SE(Coeff) t-Ratio P-Value Intercept -31.39 17.12 -1.83 0.0693 Run time 0.71 0.15 4.64 60.0001

a) Explain in words and numbers what the regression says.

b) The intercept is negative. Discuss its value, taking note of the P-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:

Budget ($M) 200- 150- 100 50- 0 + 80 100 120 140 Run Time (minutes) + 160 180 200