A motion picture industry analyst is studying movies based on epic novels. The following data were obtained for 10 Hollywood movies made in the past five years.
A motion picture industry analyst is studying movies based on epic novels. The following data were obtained for 10 Hollywood movies made in the past five years. Each movie was based on an epic novel. For these data, x1 = first-year box office receipts of the movie, x2 = total production costs of the movie, x3 = total promotional costs of the movie, and x4 = total book sales prior to movie release. All units are in millions of dollars.
| x1 | x2 | x3 | x4 |
| 85.1 | 8.5 | 5.1 | 4.7 |
| 106.3 | 12.9 | 5.8 | 8.8 |
| 50.2 | 5.2 | 2.1 | 15.1 |
| 130.6 | 10.7 | 8.4 | 12.2 |
| 54.8 | 3.1 | 2.9 | 10.6 |
| 30.3 | 3.5 | 1.2 | 3.5 |
| 79.4 | 9.2 | 3.7 | 9.7 |
| 91.0 | 9.0 | 7.6 | 5.9 |
| 135.4 | 15.1 | 7.7 | 20.8 |
| 89.3 | 10.2 | 4.5 | 7.9 |
a) If x2 (production costs) and x4 (book sales) were held fixed but x3 (promotional costs) were increased by 1.1 million dollars, what would you expect for the corresponding change in x1 (box office receipts)? (Use 2 decimal places.)
b) Test each coefficient in the regression equation to determine if it is zero or not zero. Use level of significance 5%. (Use 2 decimal places for t and 3 decimal places for the P-value.)
| t | P-value | |
| ?2 | ||
| ?3 | ||
| ?4 |
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