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 of 2005 are summarized in these plots and computer output:

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 . 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 ($M) 160 120 80 40 0 90 120 Run Time (minutes) 150 180 Dependent variable is: Budget ($M) R squared 15.4% = s=32.95 with 1202 118 degrees of freedom Coefficient SE (Coeff) t-ratio Variable P-value Intercept -31.39 17.121 -1.83 0.0693 Run time 0.71 0.15 4.64 0.0001