# Question

For the same regression as in Exercise 9, the Cook’s Distances look like this:

The outlier, once again, is John Carter, whose budget was more than $200M more than its gross revenue in the U.S. Setting this movie aside and rerunning the regression from Exercise 8, we find:

Dependent variable is: US Gross ($M)

R-squared = 0.4635, Adjusted R-squared: 0.4478

s = 53.89 with 106 - 3 = 103 degrees of freedom

a) What are the main differences between this model with John Carter removed and the model from Exercise 7 with it included?

b) Which model do you prefer? Explain briefly.

The outlier, once again, is John Carter, whose budget was more than $200M more than its gross revenue in the U.S. Setting this movie aside and rerunning the regression from Exercise 8, we find:

Dependent variable is: US Gross ($M)

R-squared = 0.4635, Adjusted R-squared: 0.4478

s = 53.89 with 106 - 3 = 103 degrees of freedom

a) What are the main differences between this model with John Carter removed and the model from Exercise 7 with it included?

b) Which model do you prefer? Explain briefly.

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