A company that holds the DVD distribution rights to movies previously released in theaters has the business objective of developing estimates of the sales revenue of DVDs Toward this goal, a company analyst plans to use box office gross to predict DVD sales revenue For 38 movies, the analyst collects the box office gross (in $Millions) in the year that they were released and the DVD revenue (in $Millions) in the following year A) What is the correlation coefficient (r) between box office gross and DVD sales revenue Is the correlation statistically significant at 5 and 1 levels of significance B) Run a regression analysis to help the analyst estimate DVD sales revenue from past year's box office gross Have this output ready before you start the exam You will be asked about the model's predictive power, interpretation of the regression coefficient, and use it in prediction Title 2013 Gross ($M) 2014 DVD Revenue ($M) The Hunger Games Catching Fire 407 140 54 925 Despicable Me 2 367 957 34 813 Frozen 296 692 185 483 Man of Steel 291 046 29 803 Gravity 255 622 24 350 Fast and Furious 6 238 680 11 446 The Hobbit The Desolation of Smaug 229 060 34 679 Thor The Dark World 203 449 27 323 World War Z 202 360 7 287 The Heat 159 582 6 842 The Wolverine 132 557 9 909 Cloudy with a Chance of Meatballs 2 117 614 20 962 Lee Daniels' The Butler 116 294 24 208 Captain Phillips 104 835 17 344 Jackass Presents Bad Grandpa 101 625 12 768 Disney Planes 90 283 10 879 The Lone Ranger 89 290 9 432 American Hustle 87 923 8 628 The Best Man Holiday 70 493 14 121 Percy Jackson Sea of Monsters 68 518 12 014 The Wolf of Wall Street 63 125 16 115 Last Vegas 63 112 8 999 Ender's Game 61 657 12 975 Saving Mr Banks 58 958 13 939 Free Birds 54 895 13 002 RED 2 53 263 7 401 Tyler Perry's A Madea Christmas 50 227 10 425 The Secret Life of Walter Mitty 45 471 7 934 Riddick 42 025 13 241 The Hobbit An Unexpected Journey 39 169 8 056 12 Years a Slave 38 472 15 233 Walking with Dinosaurs 31 344 7 529 Escape Plan 25 064 9 111 The Book Thief 19 092 9 133 About Time 15 324 7 281 The Wizard of Oz 5 509 5 538 Pitch Perfect 0 345 10 019 Lone Survivor 0 327 22 784

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A company that holds the DVD distribution rights to movies previously released in theaters has the business objective of developing estimates of the sales revenue

A company that holds the DVD distribution rights to movies previously released in theaters has the business objective of developing estimates of the sales revenue of DVDs. Toward this goal, a company analyst plans to use box office gross to predict DVD sales revenue. For 38 movies, the analyst collects the box office gross (in $Millions) in the year that they were released and the DVD revenue (in $Millions) in the following year

A) What is the correlation coefficient (r) between box office gross and DVD sales revenue? Is the correlation statistically significant at 5% and 1% levels of significance?

B). Run a regression analysis to help the analyst estimate DVD sales revenue from past year's box office gross. Have this output ready before you start the exam. You will be asked about the model's predictive power, interpretation of the regression coefficient, and use it in prediction

Title	2013 Gross ($M)	2014 DVD Revenue ($M)
The Hunger Games: Catching Fire	407.140	54.925
Despicable Me 2	367.957	34.813
Frozen	296.692	185.483
Man of Steel	291.046	29.803
Gravity	255.622	24.350
Fast and Furious 6	238.680	11.446
The Hobbit: The Desolation of Smaug	229.060	34.679
Thor: The Dark World	203.449	27.323
World War Z	202.360	7.287
The Heat	159.582	6.842
The Wolverine	132.557	9.909
Cloudy with a Chance of Meatballs 2	117.614	20.962
Lee Daniels' The Butler	116.294	24.208
Captain Phillips	104.835	17.344
Jackass Presents: Bad Grandpa	101.625	12.768
Disney Planes	90.283	10.879
The Lone Ranger	89.290	9.432
American Hustle	87.923	8.628
The Best Man Holiday	70.493	14.121
Percy Jackson: Sea of Monsters	68.518	12.014
The Wolf of Wall Street	63.125	16.115
Last Vegas	63.112	8.999
Ender's Game	61.657	12.975
Saving Mr. Banks	58.958	13.939
Free Birds	54.895	13.002
RED 2	53.263	7.401
Tyler Perry's A Madea Christmas	50.227	10.425
The Secret Life of Walter Mitty	45.471	7.934
Riddick	42.025	13.241
The Hobbit: An Unexpected Journey	39.169	8.056
12 Years a Slave	38.472	15.233
Walking with Dinosaurs	31.344	7.529
Escape Plan	25.064	9.111
The Book Thief	19.092	9.133
About Time	15.324	7.281
The Wizard of Oz	5.509	5.538
Pitch Perfect	0.345	10.019
Lone Survivor	0.327	22.784