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Statistics 4

Predicting rental revenue, using bivariate data and a chart and a graph of a regression

Can movie rental revenue be predicted?
A movie studio wishes to determine the relationship between the revenue from rental of comedies on DVD and videotape and the revenue generated from the
theatrical release of such movies. The studio has the following bivariate data from a sample of fifteen comedies released over the past five years. These data
give the revenue I from theatrical release (in millions of dollars) and the revenue y from DVD and videotape rentals (in millions of dollars) for each of the fifteen
movies. Also shown are the scatter plot and the least-squares regression line for the data. The equation for this line is ) = 3.71 +0.157.
Theater revenue,
Rental revenue, y
(in millions of
dollars)
in millions of
dollars)
25.8
7.2
65.8
9.7
5.6
36.7
12.7
3
28.7
3.5
19
6.8
2.7
16.4
27.8
12.16
60.9
16.3
30.9
5.9
12.8
10.1
6112
9.6
पूर्वमा
25.3
8.6
al
441
Sens data
to Dia
Based on the studio’s data and the regression line, answer the following:
1. Fill in the blank: For these dele, values for rental revenue that are
less than the trean of the values for rental Revenge tende pered
with values for theater revenue that are tre mer or the values
for theater revenue.
Choose one
2. According to the regression equation, for an increase of one million
dollars in theater revenue, treres a corresponding increase u
merly million dollars in rental revente?
3. From the regression equation, whets the predicted rental revenue
in millions of dollars) when the theater revenue is 12.8 million
dollars? (ROUnd your answer to at least one decine dla
4 Widt wes the served rental revenue milango* dollars, w
the theater was 12.8 million dollars
0

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