The movie Harry Potter and the Sorcerer’s Stone opened as a great success. But every movie sees declining revenue over time. Here are the daily revenues for the movie during its first 17 days.
a) Without plotting the data, what components can you see in this series? Be specific. For some series, a “seasonal” effect repeats weekly rather than annually. Here’s a regression model fit to these data with dummy variables for days of the week. (Day# counts days starting at 1.)
b) Interpret the coefficient of Day#.
c) Interpret the coefficient of Saturday in this model.
d) Predict what earnings probably were for Monday 12/3/01. What does this say about the model?
e) What probably happened to earnings after the initial 17 days?

  • CreatedMay 15, 2015
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