Use the data of Example 11-3, presented in Table, to try to fit a polynomial regression model of movie gross earnings on production cost and production cost squared. Also try promotion and promotion squared. What is the best, most parsimonious model?
Answer to relevant QuestionsAn ingenious regression analysis was reported in which the effects of the 1985 French banking deregulation were assessed. Bank equity was the dependent variable, and each data point was a tax return for a particular quarter ...Explain what is meant by perfect collinearity. What happens when perfect collinearity is present? The following data are the monthly profit margins, in dollars per gallon, for an ethanol marketer from January 2005 through December 2006. 0.5, 0.7, 0.8, 1.0, 1.0, 0.9, 1.1, 1.4, 1.5, 1.4, 0.7, 0.8, 0.8, 0.7, 1.1, 1.5, 1.7, ...The following data are from the Treasury Bulletin, published by the U.S. Department of the Treasury. They represent total U.S. liabilities to foreigners for the years 2000 to 2006 in millions of dollars: Can you forecast ...Discuss and compare all the forecasting methods presented in this chapter. What are the relative strengths and weaknesses of each method? Under what conditions would you use any of the methods?
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