On a typical night in New York, about 25,000 people attend a Broadway show, paying an average price of more than $75 per ticket. Variety (www.variety.com), a news weekly that reports on the entertainment industry, publishes statistics about the Broadway show business. The data file on the disk holds data about shows on Broadway for most weeks of a recent three-year period. (A few weeks are missing data.) The following variables are available for each week:

Receipts ($ million)
Paid Attendance (thousands)
# Shows
Average Ticket Price ($)
Viewing this as a business, we€™d like to model Receipts in terms of the other variables.
First, here are plots and background information.
a) Name and check (to the extent possible) the regression assumptions and their corresponding conditions.
b) If we found a regression to predict Receipts only from Paid Attendance, what would the R2 of that regression be?

Transcribed Image Text:

21 18 15 180 210 240 270 Paid Attendance (000) 2 21 15 20 24 28 336 Number of Shows 21 72 76 8084 Average Ticket Price Correlations Paid Average Receipts Attendance #Shows Ticket Price Receipts (SM) Paid Attendance # Shows Average Ticket Price 1.000 0.961 0.745 0.258 1.000 0.640 0.331 1.000 -0.160 1.000