2 Universal Studios is developing a model to predict first week number of tickets sold to its non-animated movies. Universal collects information on 17 recent releases and wants to identify those characteristics that are related to TICKETS. The data was used to fit the following three models in which the dependent variable is TICKETS a) What is the value of the simple correlation between TICKETS and COST? b). If you are able to determine the answer, is showing the film in more theatres associated with higher ticket sales (with cost and holiday opening held constant) with = 0.05? (Justify your response). c) If you are able to determine the answer, do higher cost movies have higher ticket sales (with THEATRE, HOLIDAY and movie genre held constant) with = 0.05? (Justify your response). d) If you are able to determine the answer, do movies opening on holiday weekends have different ticket sales than those opening on non-holiday weekends (with COST held constant) with = 0.05? (Justify your response). e) Interpret the coefficient for COST in Model 1 (that is, interpret the estimated value of 0.0944 without considering whether or not this value is \"statistically significant\"). f) Interpret the coefficient for ACTION in Model 3 (that is, interpret the estimated value of 2.3487 without considering whether or not this value is \"statistically significant\"). g) Interpret the coefficient for THEATRE in Model 2 (that is, interpret the estimated value of 1.6813 without considering whether or not this value is \"statistically significant\"). h) Which model would you recommend to predict TICKETS with = 0.05? (Justify your response). i) Based on model 3, predict TICKETS for a superhero movie opening in 3500 theatres on a holiday weekend that cost $150,000,000. Use all variables in Model 3 to obtain your prediction even if some of them are not \"statistically significant\". j) What is the 95% prediction interval for your prediction in part i)? Question 2 You are a real estate developer and are trying to determine the EMV of your net commission from a sales call to a potential purchaser. Assume that your transportation cost is $1.45 per mile Assume that the sales call is 70 miles round trip Assume that your transportation time is 2.25 minutes per mile Assume that the value of your time for transportation is $55.00 per hour Assume that it will take 3 hours to meet with the potential purchaser Assume that the value of your time for the customer meeting is $150.00 per hour Assume that you will have a 19% chance of a successful sales call (sales call #1) If sales call #1 is successful, you will sell a house valued at $275,000 with likelihood = 55% you will sell a house valued at $300,000 with likelihood = 35% you will sell a house valued at $425,000 with likelihood = 10% Assume that your commission will be 2.5% of the value of the house if sales call #1 is successful. a) What is the expected cost (time and transportation) of sales call #1? b) Without assuming that the sales call will be successful (that is, it may or may not be a success), what is the expected gross commission of sales call #1 (do not net out the expected costs)? Suppose you have a second possible sales call (sales call #2). Assume that the expected cost remains the same and that the commission rate remains 2.5%, but that the following information is the different information for sales call #2. Assume that you will have a 12% chance of a successful sales call (sales call #2) If sales call #2 is successful, you will sell a house valued at $285,000 with likelihood = 45% you will sell a house valued at $320,000 with likelihood = 25% you will sell a house valued at $355,000 with likelihood = 30% c) Assuming that your sales call is successful, which sales call is the maximin sales call? (Don't simply define maximin, but use values to justify your response)