Here is the regression for Exercise 3 with an indicator variable:
Dependent variable is: US Gross($M)
R-squared = 0.193, Adjusted R-squared: 0.166
s = 37.01 with 62 - 3 = 59 degrees of freedom
a) Write out the regression model.
b) In this regression, the variable R Rating is an indicator variable that is 1 for movies that have an R rating. How would you interpret the coefficient of R Rating?
c) What null hypothesis can we test with the t-ratio for R Rating?
d) Can you reject the null hypothesis of part c? Explain.

  • CreatedMay 15, 2015
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