Question: Do movies of different types have different rates of return

Do movies of different types have different rates of return on their budgets? Here’s a scatterplot of Gross Revenue in US ($M) vs. Budget ($M) for recent movies whose MPAA Rating is either PG (blue) or R (red):
a) Why might a researcher want to use an indicator variable for the MPAA Rating?
b) What would the data values in such an indicator variable be?

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  • CreatedMay 15, 2015
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