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Data for this exercise includes a sample of movies and attributes of each movie. The purpose is to evaluate factors that are related to movies'
Data for this exercise includes a sample of movies and attributes of each movie. The purpose is to evaluate factors that are related to movies' success. Success is measured as Gross Income for the movie in the US. a. [5 points]: Develop the scatter plot where a movie's production budget is used to forecast Domestic Gross Revenue. b. [5 points]: Develop the Simple Linear Regression where a movie's production budget is used to forecast Domestic Gross Revenue. State the estimated regression model. Is this regression statistically significant? Justify your answer using statistical arguments. c. [5 points]: Develop the Multiple Linear Regression where a movie's production budget and genre are used to forecast Domestic Gross Revenue. Show your regression excel output and your regression equation. A few notes: You have to develop the corresponding Indicator Dummy (0/1) variables for the different genres. Use the genre of horror as your base (omitted) category. State the estimated regression model. d. [5 points]: Use the model of part (c.) in order to predict Gross Domestic Revenue for a movie with a production budget of $40,000,000 for Action, Drama, Comedy, and Thriller. e. [5 points]: Include an interaction term between Budget and Drama in model
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