Ticket prices. On a typical night in New York, about 25,000 people attend a Broadway show, paying an average price of more than $75 per ticket. Variety (www.variety.com), a news weekly that reports on the entertainment industry, publishes statistics about the Broadway show business. The data file on the disk holds data about shows on Broadway for most weeks of 2006–2008. (A few weeks are missing data.)

The following variables are available for each week:

Receipts ($ million)

Paid Attendance (thousands)

# Shows Average Ticket Price ($)

Viewing this as a business, we’d like to model Receipts in terms of the other variables.

First, here are plots and background information.

a) Name and check (to the extent possible) the regression assumptions and their corresponding conditions.

b) If we found a regression to predict Receipts only from Paid Attendance, what would the of that regression be?

Transcribed Image Text:

Receipts ($M) 21 Receipts ($M) 18 15 Receipts ($M) 21 2010 18 15 + 180 210 240 270 Paid Attendance (000) 20 24 28 32 36 Number of Shows 15 + + 72 76 80 84 Average Ticket Price Paid Correlations Average Receipts Attendance #Shows Ticket Price Receipts (SM) 1.000 Paid Attendance 0.961 1.000 #Shows 0.745 0.640 1.000 Average Ticket Price 0.258 0.331 -0.160 1.000