Question

4. A student wants to study how movie box office revenue changes in each month of the year. He or she wants to be able to recommend which month is the best month of the year to release a movie after controlling for two variables: production budget and the number of competing movies. The student decided to use linear regression as the model.

If the student use the following three independent variables in this regression:

1. Month, coded as 1,2,3,4,…,12, representing January, February, March….. December.
2. Production budget, monetary value in dollars
3. the number of competing movies, integer representing the number of competing movies

Please specify the problem with this regression and recommend how to improve it in order to achieve the student's research goal.

Answer 1

To recommend which month is best for release .The current regression model should include the other variables also like profit margin from the movie ,holidays in that month , festival data can also be included so that we can fit our regression model well.

By using all these variables predictions can be obtained for any of the month . Then by comparing the predicted all month's revenue we can recommend the month which showing the higher revenue.

For further more we can use the time series models from the movies historic data by which we can more accurately predict the revenue for upcoming months by using various variables. Or seasonal analysis by time series technique is the best option for recommending better month for release.