How does the production budget of a movie depend on its length? Data on the budgets (millions of dollars) and the running times (minutes) for major-release films in a recent year are summarized in these plots and computer output:

Dependent variable is: Budget ($M)

R squared = 15.4%

s = 32.95 with 120 – 2 = 118 degrees of freedom

a) Explain in words and numbers what the regression says.

b) The intercept is negative. Discuss its value, taking note of the P-value.

c) The output reports that s = 32.95. Explain what that means in this context.

d) What’s the value of the standard error of the slope of the regression line?

e) Explain what that means in this context.

Transcribed Image Text:

160 120 80 40 90 120 150 180 Run Time (minutes) Budget ($ million) Variable Intercept Run Time Coefficient SE(Coeff) 17.12 P-value 0.0693 <0.0001 t-ratio -1.83 -31.39 4.64 0.71 0.15