Chapter 2, Problem 2CP

Motion Picture Industry

The motion picture industry is a competitive business. More than 50 studios produce a total of 300 to 400 new motion pictures each year, and the financial success of each motion picture varies considerably. The opening weekend gross sales ($ millions), the total gross sales ($ millions), the number of theaters the movie was shown in, and the number of weeks the motion picture was in release are common variables used to measure the success of a motion picture.  Data collected for the top 100 motion pictures produced in 2011 are contained in the DATA file named 2011 Movie (Box Office Mojo, March 17.2012). Table 2.20 shows the data for the first 10 motion pictures in this file.

Managerial Report

Use the tabular and graphical methods of descriptive statistics to learn how these variables contribute to the success of a motion picture. Include the following in your report.

1. 1. Tabular and graphical summaries for each of the four variables along with a discussion at what each summary tells us about the motion picture industry.
2. 2. A scatter diagram to explore the relationship between Total Gross Sales and Opening Weekend Gross Sales. Discuss.
3. 3. A scatter diagram to explore the relationship between Total Gross Sales and Number of Theaters. Discuss.
4. 4. A scatter diagram to explore the relationship between Total Gross Sales and Number of Weeks in Release. Discuss.

TABLE 2.20 PERFORMANCE DATA FOR 10 MOTION PICTURES