Exercise 2 (31 marks: 4 + 3 + 9 + 15) A motion industry analyst wants to estimate the gross earnings generated by a movie ( Earnings in millions of dollars). The estimate will be based on different variables involved in the film's production, such as Production: production cost of the movie (millions of dollars). Promotion: total cost of all promotional activities associated with the film (millions of dollars). Book: is the film based on a book published before the release of the movie (0: no, 1: yes)? The analyst takes a random sample of 60 Hollywood movies made within the last 5 years and records the values of Earnings, Production, Promotion and Book for each.2 This data set is saved in the a3e2 Excel file. (a) Briefly describe the type and level of measurement of each of the four variables. (b) Consider the following three pairs of variables: Earnings and Production, Earnings and Promotion, and Earnings and Book. In each case, do you expect the variables to be related to each other? If yes, do you expect the relationship to be positive or negative? Explain your answers. (c) Using A, calculate the Pearson or Spearman correlation coefficient, whichever is more appropriate, for the three pairs of variables in part (b). In each case, briefly explain your choice between the Pearson and Spearman correlation coefficients and comment on the direction and relative strength of the relationship as implied by the point estimate.(d) Based on your answers in part (b), perform an appropriate one-tail test with R at the 5% significance level on each pair of variables to determine whether there is a linear, or at least monotonic, relationship between the variables in the expected direction. In each case, show the hypotheses and state the statistical decision and the conclusion.\f