Box office Example with 2 Dummy variables: Let us define two dummy variables: First yr box Total Prod Total Promotional Total Book office Cost Sales Dummy Dumimy million dollary imilion dollary Costs Horror 5d-fl Genre Imillion dollini Inlles dollar 85.10 Horror 106.30 12.90 5.8 8.80 Horror 50.20 5.20 15.10 Horror 130.60 10.70 12.20 Horror 54.80 T'E 10.60 30.30 3.5 3.50 79.40 9.20 3. 70 3.70 090 00OHHH Drama 91.00 9.0 5.9 Drama 135.40 15.10 Sci-f 89.30 10.20 Sci-fi 95.00 7.00 4.00 10.40 14.00 Sci-fi Use the tale below to construct your 0/1 dummy variables Horror Drama Sci-fi 1 HDX 1 Regression Analysis R+2 0.891 Adjusted R*2 0.801 0.944 Std. Error 13.807 Dep. Var. ANOVA table Source MS p-value Regression 9,392.9348 1,878.5870 -0074 Residual 1,143.7420 190.6237 Total 10,536.6768 Regression output confidence interval variables corincients std. error P-value 25%% lower 95% upper Intercept 12.4024 0.959 -18.4530 2.1321 2.2486 0.948 .3796 -3.3701 7.6344 x2 6.9511 3.0124 2.308 0605 -0.4199 14.3221 1.6161 0.8667 1.865 .1115 -0.5046 3.7368 xdi 7.6008 10.8600 0.700 5102 -18.9727 34.1743 wds 7.5497 12.4735 0.605 5672 -22.9720 38.07141) What are the values of bo by by by by bs 2 1 Interpret the slopes by by by , by and be and - by + b 3) What is the least squares prediction equation ?Test the significance of the regression model complete the following steps 1 Ha : By = B 2 = B 3 = By = BS = D H . At least one of By Ba Ba BABa # D 2 0 = 0 05 3 . Test statistic: F 4 . Reject Ho if FSF or - values alpha P - value or 3 0 05 ? Decision : 5 . Conclusion 51 Test the significance of each dummy variable ( complete the steps Testing the significance of By 1 Ho: By = 0 He By # 1 2 0= 0 05 3 . Test statistics t 4 . Reject Ho if todayz arts - ta / 2 Orp -value 905 stay 2 P - value or 3 0 05 7 Decision 5 . Conclusion