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?

Transcribed Image Text:

Variable Coefficient SE(Coeff t ratio P value Intercept 34.0262 Budget R Rating Budget*R 10.6595 0.1143 3.192 0.00187 6.912 <0.0001 0.7902 9.9217 18.8666 0.526 0.60009 Rating 0.6679 0.3798 1.758 0.08163