The statistics computed below use data from a number of recently released movies that includes theUSGross (in $), the Budget ($), the Run Time (minutes), and the average number of stars awarded byreviewers. The multiple regression equation is shown below. A middle manager at an entertainment company,upon seeing this analysis, concludes that the longer you make a movie, the less money it will make. He arguesthat his company's films should all be cut by 25 minutes to improve their gross. Explain the flaw in hisinterpretation of this model.USGross = -22.9898 +1.13442Budget +24.9724Stars -0.403296Run TimeChoose the correct answer below.O A. Since the coefficient for Run Time is less than one, making a movie shorter may or may not increaseits gross.O B. The model says that longer films had larger gross incomes after allowing for Budget and Stars, somaking a movie longer will increase its gross.O C.Since the coefficient for Run Time is so small, the studio should cut the films by more than 25 minutesto increase gross income.O D. The model says that longer films had smaller gross incomes after allowing for Budget and Stars, but itdoes not say that making a movie shorter will increase its gross.

We are given a multiple regression model as,The manager argues that his company's films should all…

Answered: The statistics computed below use data…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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