For this exercise, use the Movies dataset 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

Movies from 2017 and 2018 (R rated Movies) https://www.the-numbers.com/market/2018/top-grossing-movies Rank Movie Release Date Distributor Genre MPAA Rating Domestic Gross Budget 5 Deadpool 2 18-May-18 20th Century Fox Action R $324,512,774 $110,000,000 6 It 9/8/2017 Warner Bros. Horror $327,481,748 $35,000,000 9 Logan 3/3/2017 20th Century Fox Action $226,277,068 $127,000,000 12 A Star is Born 5-Oct-18 Warner Bros. Drama $201,157,885 $36,000,000 19 Halloween 19-Oct-18 Universal Horror $159,342,015 $15,000,000 27 Girls Trip 7/21/2017 Universal Comedy $115,108,515 $28,000,000 28 The Nun 7-Sep-18 Warner Bros. Horror $117,450,119 $22,000,000 29 Baby Driver 6/28/2017 Sony Pictures Thriller $107,825,862 $34,000,000 32 The Equalizer 2 20-Jul-18 Sony Pictures Action $102,084,362 $77,000,000 32 Annabelle: Creation 8/11/2017 Warner Bros. Horror $102,092,201 $15,000,000 35 Kingsman: The Golden Circle 9/22/2017 20th Century Fox Action $100,227,039 $104,000,000 36 John Wick: Chapter Two 2/10/2017 Lionsgate Action $92,029,184 $40,000,000 37 Blade Runner 2049 10/6/2017 Warner Bros. Thriller $91,654,512 $185,000,000 41 The Hitman's Bodyguard 8/18/2017 Lionsgate Action $75,468,583 $30,000,000 42 Alien: Covenant 5/19/2017 20th Century Fox Horror $74,262,031 $97,000,000 42 The First Purge 4-Jul-18 Universa Horror $69,488,745 $13,000,000 43 Game Night 23-Feb-18 Warner Bros. Comedy $69,179,066 $37,000,000 44 A Bad Moms Christmas 11/1/2017 STX Entertainment Comedy $71,891,988 $28,000,000 48 Baywatch 5/25/2017 Paramount Pictures Comedy $58,060,186 $60,000,000 49 The Mule 14-Dec-18 Warner Bros. Drama $64,720,334 $50,000,000 50 Blockers 5-Apr-18 Universal Comedy $60,311,495 $21,000,000 52 Atomic Blonde 7/28/2017 Focus Features Thriller $51,573,925 $30,000,000 53 American Made 9/29/2017 Universal Thriller $51,342,000 $50,000,000 55 Tag 15-Jun-18 Warner Bros. Comedy $54,730,625 $28,000,000 56 A Simple Favor 14-Sep-18 Lionsgate Thriller $53,548,586 $20,000,000 58 The Predator -18 20th Cent Action $51,024,708 $88,000,000 58 Snatched 5/12/2017 20th Century Fox Comedy $45,852,178 $42,000,000 60 Sicario: Day of the Soldado 29-Jun-18 Sony Pictures Action $50,065,850 $35,000,000 62 All Eyez on M 6/16/2017 Lionsgate Drama $44,922,302 $45,000,000 62 BlackkKlansman 10-Aug-18 Focus Features Thriller $48,527,565 $15,000,000 63 The Shape of Water 1-Dec-17 Fox Searchli Drama $48,189,258 $19,500,000 64 Red Sparrow 2-Mar-18 20th Century Fox Thriller $46,874,505 $69,000,000 67 12 Strong 19-Jan-18 Warner Bros Dram $45,819,713 $35,000,000 68 Den of Thieves 19-Jan-18 STX Entertainment Action $44,947,622 $30,000,000 70 Hereditary 8-Jun-18 A24 Horror $44,069,456 $10,000,000 74 The Foreigner 10/13/2017 STX Entertainment Action $34,393,507 $35,000,000 81 Lady Bird 11/3/2017 A24 Drama $31,432,463 $10,000,000 84 Underworld: Blood Wars 1/6/2017 Sony Pictures Action $30,353,973 $35,000,000 84 Peppermint 7-Sep-18 STX Entertainment Action $35,418,723 $25,000,000 91 Nobody's Fool 2-Nov-18 Paramount Pictures Drama $31,713,110 $19,000,000 108 White Boy Rick 14-Sep-18 Sony Pictures Drama $24,004,833 $30,000,000 109 Molly's Game 25-Dec-17 STX Entertainment Drama $23,403,264 $30,000,000 114 Phantom Thread 25-Dec-17 Focus Features Drama $20,670,365 $35,000,000 117 Detroit 8/4/2017 Annapurna Pictures Drama $16,790,139 $40,000,000 118 The Shape of Water 12/1/2017 Fox Searchlight Drama $15,670,177 $19,500,000 121 Lady Bird 3-Nov-17 A24 Drama $17,525,810 $10,000,000 132 Mary Queen of Scots 7-Dec-18 Focus Features Dram $13,424,885 $25,000,000 135 Live by Night 12/25/2016 Warner Bros. Drama $10,283,585 $65,000,000 145 Jackie 12/2/2016 Fox Searchlight Drama $7,490,669 $9,000,000 151 Silence 12/23/2016 Paramount Pictures Drama $6,789,497 $46,500,000 153 Beautiful Boy 12-Oct-18 Amazon Studios Drama $7,610,815 $25,000,000 208 Ben is Back 7-Dec-18 Roadside Attractions Drama $2,511,840 $13,000,000 234 Elle 11/11/2016 Sony Pictures Classics Drama $1,423,285 $9,100,000 239 Lean on Pete 6-Apr-18 A24 Drama $1,163,056 $8,000,000 247 Schindler's List 15-Dec-93 Universal Drama $895,180 $25,000,000 282 The Happy Prince 10-Oct-18 Sony Pictures Cla... Drama $464,495 $13,000,000 286 Bitter Harvest padside Attractions Drama $557,241 $21,000,000 289 Phantom Thread 12/25/2017 Focus Features Drama $527,840 $35,000,000 296 Allied 11/23/2016 Paramount Pictures Drama $499,123 $106,000,000 522 The Edge of Seventeen 11/18/2016 STX Entertainment Drama $24,847 $9,000,000 Sheet1 + Ready