In 2018, 14.77 million people attended a Broadway show, paying an average of more than $120 per ticket. So what variables are related to the success of a particular Broadway season? Data from the Broadway League, Inc. (www.broadwayleague.com/research/statistics-broadway-nyc/) are used to estimate the following multiple linear regression model:
Grossi=β0+β1Attendancei+β2PlayingWeeksi+β3NewProductionsi+εi
for i=1,⋯,35 . The following data are gathered for each season from 1984 to 2018:
Excel was used to estimate this model and the output is provided below.
Regression Statistics |
|||||||
Multiple R |
0.922185639 |
||||||
R Square |
0.850426354 |
||||||
Adjusted R Square |
0.835951485 |
||||||
Standard Error |
183.1940204 |
||||||
Observations |
35 |
||||||
ANOVA |
|||||||
df |
SS |
MS |
F |
Significance F |
|||
Regression |
3 |
5915152.02 |
1971717 |
58.75192 |
6.84E-13 |
||
Residual |
31 |
1040361.523 |
33560.05 |
||||
Total |
34 |
6955513.543 |
|||||
Coefficients |
Standard Error |
t Stat |
P-value |
Lower 95% |
Upper 95% |
|
Intercept |
-1345.794142 |
340.4476833 |
-3.95301 |
0.000416 |
-2040.14 |
-651.447 |
Attendance |
258.0733774 |
66.98749021 |
3.852561 |
0.000549 |
121.4515 |
394.6953 |
Playing weeks |
-0.831807119 |
0.639068006 |
-1.30159 |
0.202645 |
-2.13519 |
0.471581 |
New Productions |
12.64582072 |
7.912639627 |
1.59818 |
0.120147 |
-3.49211 |
28.78376 |
[JP1]Beginning with the 2009-10 season, "Gross" represents gross gross—which is the gross earnings before deductions. For prior seasons, “Gross” represents net gross earnings, which is the income after accounting for deductions incurred by the show.
[JP2]Note: before 2009 this is paid attendance, beginning in 2009 it is attendance
from above output;
estimated coefficient for Playing weeks= -0.831807119
We may interpret the slope −0.831807119 as there is decrease in Gross earnings due to PlayingWeeks.
Now to test significance of slope of playing weeks
H0: β1 = 0 v/s H1: β1 ≠0
P-value= 0.202645
α=0.05
p-value > 0.05
hence we accept null hypothesis at 5% level of significance.
conclusion: Failing to reject H 0 , implies that there is no linear relationship between Gross earnings and PlayingWeeks
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