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Can movie rental revenue be predicted? A movie studio wishes to determine the relationship between the revenue from rental of comedies on DVD and videotape

Can movie rental revenue be predicted?

A movie studio wishes to determine the relationship between the revenue from rental of comedies on DVD and videotape and the revenue generated from the theatrical release of such movies. The studio has the following bivariate data from a sample of comedies released over the past five years. These data give the revenue x from theatrical release (in millions of dollars) and the revenue y from DVD and videotape rentals (in millions of dollars) for each of the movies. Also shown are the scatter plot and the least-squares regression line for the data. The equation for this line is =y+3.560.15x.

A is greater than or less than?

B is increase or decrease?

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Theater Rental revenue, x revenue, y (in millions of (in millions of dollars) dollars) 36.2 11.8 25.4 9.1 28. 1 12.2 X 28.3 2.3 20.8 5.7 65.5 10.4 * * (in millions of dollars) Rental revenue, y X 6.8 1.5 44.2 6.6 X X 61.5 9.8 12.5 11.2 X X 48.4 15.6 10 20 50 60 31.4 5.8 61.2 16.9 Theater revenue, x (in millions of dollars) 14.3 3.0 25.8 7.7 Send data to calculator V Send data to Excel Based on the sample data and the regression line, complete the following. (a) For these data, values for rental revenue that are greater than the mean of the values for rental revenue tend to be paired with values for theater revenue that are (Choose one) |the mean of the values for theater revenue. X 2 (b) According to the regression equation, for an increase of one million dollars in theater revenue, there is a corresponding (Choose one) V of 0.15 million dollars in rental revenue. c) What was the observed rental revenue (in millions of dollars) when the theater revenue was 44.2 million dollars? (d) From the regression equation, what is the predicted rental revenue (in millions of dollars) when the theater revenue is 44.2 million dollars? (Round your answer to at least one decimal place.)

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