Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

13.73 Can you use movie critics opinions to forecast box office receipts on the opening weekend? The following data, stored in Tomatometer , indicate the

  • 13.73 Can you use movie critics’ opinions to forecast box office receipts on the opening weekend? The following data, stored in Tomatometer , indicate the Tomatometer rating, the percentage of professional critic reviews that are positive, and the receipts per theater ($thousands) on the weekend a movie opened for ten movies: a. Use the least-squares method to compute the regression coefficients b0 and b1. b. Interpret the meaning of b0 and b1 in this problem. c. Predict the mean receipts for a movie that has a Tomatometer rating of 55%. d. Should you use the model to predict the receipts for a movie that has a Tomatometer rating of 5%? Why or why not? e. Determine the coefficient of determination, r2, and explain its meaning in this problem. f. Perform a residual analysis. Is there any evidence of a pattern in the residuals? Explain. g. At the 0.05 level of significance, is there evidence of a linear relationship between Tomatometer rating and receipts? h. Construct a 95% confidence interval estimate of the mean receipts for a movie that has a Tomatometer rating of 55% and a 95% prediction interval of the receipts for a single movie that has a Tomatometer rating of 55%. i. Based on the results of (a)–(h), do you think that Tomatometer rating is a useful predictor of receipts on the first weekend a movie opens? What issues about these data might make you hesitant to use Tomatometer rating to predict receipts?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Basic Business Statistics Concepts And Applications

Authors: Mark L. Berenson, David M. Levine, Kathryn A. Szabat, David F. Stephan

14th Edition

134684842, 978-0134684840

More Books

Students also viewed these Finance questions

Question

What would you do?

Answered: 1 week ago