In Problem 12.10 on page 424, you used box office gross to predict DVD revenue. Perform a residual analysis for these data (stored in Movie ). Based on these results, evaluate whether the assumptions of regression have been seriously violated.
In problem 12.10
A company that holds the DVD distribution rights to movies previously released only in theaters has the business objective of developing estimates of the sales revenue of DVDs. Toward this goal, a company analyst plans to use box office gross to predict DVD sales revenue. For 26 movies, the analyst collects the box office gross (in $ millions) in the year that they were released and the DVD revenue (in $ millions) in the following year and stores these data in Movie . (Data extracted from “ Annual Movie Chart– 2012,” bit. ly/ 1kVJIF3 and “ Top Selling DVDs in the United States 2013,” bit. ly/ UpTep9.) For these data,