# Question: Here is the scatterplot of the variables in Exercise 7

Here is the scatterplot of the variables in Exercise 7 with regression lines added for each kind of movie:

The regression model is:

Dependent variable is: US Gross ($M)

R-squared = 0.3674, Adjusted R-squared: 0.3491 s = 58.24 with 107 - 3 = 104 degrees of freedom

a) Write out the regression model.

b) In this regression, the variable Budget*R Rating is an interaction term. How would you interpret its coefficient?

c) What null hypothesis can we test with the t-ratio for Budget*R Rating?

d) Would you reject that hypothesis at 0.05? What do you conclude?

The regression model is:

Dependent variable is: US Gross ($M)

R-squared = 0.3674, Adjusted R-squared: 0.3491 s = 58.24 with 107 - 3 = 104 degrees of freedom

a) Write out the regression model.

b) In this regression, the variable Budget*R Rating is an interaction term. How would you interpret its coefficient?

c) What null hypothesis can we test with the t-ratio for Budget*R Rating?

d) Would you reject that hypothesis at 0.05? What do you conclude?

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