Chapter 12.6, Problem 12.61ACI

Revenues of popular movies. The Internet Movie Database (www.imdb.com) monitors the gross revenues for all major motion pictures. The table on the next pogo gives both the domestic (United States onto Canada) and international gross revenues for a sample of 25 popular movies.

1. a. Write a first-order model for foreign gross revenues (y) as a function of domestic gross revenues (x).
2. b. Write a second-order model for international gross revenues y as a function of domestic gross revenues x.
3. c. Construct a scatterplot for these data. Which of the models from parts a and b appears to be the better choice for explaining the variation in foreign gross revenues? first-order model
4. d. Fit the model of part b to the data and investigate its usefulness. Is there evidence of a curvilinear relationship between international and domestic gross revenues? Try using α = .05.
5. e. Based on your analysis in part d, with of the models from parts a and b better explains the variation in international gross revenues? Compare your answer with your preliminary conclusion from part c.