Question
HELP ASAP The different slopes in the scatterplot indicate that an interaction term should be included in a regression model. An indicator variable called Rating
HELP ASAP
The different slopes in the scatterplot indicate that an interaction term should be included in a regression model. An indicator variable calledRatingwas created with Rating = 0 for a PG-13-rated movie and Rating = 1 for an R-rated movie. This indicator variable and an interaction term between Budget($M) and the indicator variableRatingare included with Budget($M) as the explanatory variables in a model with USGross($M) as the response variable.
The data in this Excel fileR and PG13 Rated Movieswas used to obtain the scatterplot shown above. Use the data in the Excel file to perform a multiple regression procedure withUSGross($M)as theresponsevariable and Budget($M), Rating, and the interaction term Budget*Rating as the explanatory variables. You can use Excel, statcrunch, or any other software of your choice.
DATA: https://docs.google.com/spreadsheets/d/1uVbwObxWm3wO_d1CpJXvE6D_d0T7EPABj0bX8L9iBT8/edit?usp=sharing
Question 1. For an R-rated movie, each additional $1 million in the budget changes the USGross($M) by how much?
Question 2. For an PG13-rated movie, each additional $1 million in the budget changes the USGross($M) by how much? (use 2 decimal places)
Question 3. What is the residual for Harry Potter and the Goblet of Fire? (use 2 decimal places)
Question 4. What is the residual for The Amityville Horror? (use 2 decimal places)
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