Question

Commercial Movie Releases The yearly data have been published showing the number of releases for each of the commercial movie studios and the gross receipts for those studios thus far. The regression line equation is =y′+162.128.951x. The correlation coefficient is =r0.951. Compute the standard error of the estimate rounded to at least two decimal places, if appropriate. Assume =α0.01

.

No. of releases, x	21	270	12	10	361	35	22	8
Gross receipts, y (million $ )	125	1962	154	241	3844	334	1064	188

Answer 1

From the data,

Total sum of squares, SST =

Residual sum of squares, SSE = SST * (1 - )

= 12177230 * (1 - )

= 1164131

Degree of freedom, df = n-2 = 8-2 = 6

Mean Residual sum of squares, MSE = SSE / df = 1164131 / 6 = 194021.8

Standard error of the estimate =

= 440.4791