Question

Are R rated movies as profitable as PG-13 rated movies? Below is a scatterplot of USGross($M) vs Budget($M) for R rated (red) and PG-13 rated (blue) movies with least squares lines included for each kind of movie.

The different slopes in the scatterplot indicate that an interaction term should be included in a regression model. An indicator variable called Rating was created with Rating = 0 for a PG-13-rated movie and Rating = 1 for an R-rated movie. This indicator variable and an interaction term between Budget($M) and the indicator variable Rating are included with Budget($M) as the explanatory variables in a model with USGross($M) as the response variable.

The data in this Excel file R and PG13 Rated Movies was used to obtain the scatterplot shown above. Use the data in the Excel file to perform a multiple regression procedure with USGross($M) as the response variable and Budget($M), Rating, and the interaction term Budget*Rating as the explanatory variables. You can use Excel, statcrunch, or any other software of your choice.

Question 1. For an R-rated movie, each additional $1 million in the budget changes the USGross($M) by how much?

million dollars (use 2 decimal places)

Question 2. For an PG13-rated movie, each additional $1 million in the budget changes the USGross($M) by how much? (use 2 decimal places)

million dollars

Question 3. What is the residual for Harry Potter and the Goblet of Fire? (use 2 decimal places)

million dollars

Question 4. What is the residual for The Amityville Horror? (use 2 decimal places)

million dollars

https://www.webassign.net/userimages/movies%20R%20PG13.xlsx?db=v4net&id=555697

Answer 1

Question 1. For an R-rated movie, each additional $1 million in the budget changes the USGross($M) by how much?

0.35 million dollars (use 2 decimal places)

Question 2. For an PG13-rated movie, each additional $1 million in the budget changes the USGross($M) by how much? (use 2 decimal places)

0.89 million dollars

Question 3. What is the residual for Harry Potter and the Goblet of Fire? (use 2 decimal places)

143.27 million dollars

Question 4. What is the residual for The Amityville Horror? (use 2 decimal places)

30.38 million dollars