What can predict how much a motion picture will make?

We have data on a number of recent releases that includes the USGross (in $M), the Budget ($M), the Run Time (

minutes), and the average number of Stars awarded by reviewers. The first several entries in the data table look like this:

We want a regression model to predict USGross. Parts of the regression output computed in Excel look like this:
Dependent variable is: USGross($)
R squared = 47.4% R squared (adjusted) = 46.0%
s = 46.41 with 120 - 4 = 116 degrees of freedom Variable Coefficient SE(Coeff) t-ratio P-value Intercept -22.9898 25.70 -0.895 0.3729 Budget($) 1.13442 0.1297 8.75 60.0001 Stars 24.9724 5.884 4.24 60.0001 Run Time -0.403296 0.2513 -1.60 0.1113

a) Write the multiple regression equation.

b) What is the interpretation of the coefficient of Budget in this regression model?

Transcribed Image Text:

USGross Budget Run Time Movie ($M) ($M) (minutes) Stars White Noise 56.094360 30 101 2 Coach Carter 67.264877 45 136 3 Elektra 24.4097 22 65 100 2 Racing Stripes 49.772522 30 110 3 Assault on Precinct 13 20.040895 30 109 3 Are We There Yet? 82.674398 20 Alone in the Dark 5.178569 20 22 94 2 96 1.5 Indigo 51.100486 25 25 105 3.5