What can predict how much a motion picture will make? We have data on a number of recent releases that includes the USGross (in $M), the Budget ($M), the Run Time (minutes), and the average number of Stars awarded by reviewers. The first several entries in the data table look like this:

We want a regression model to predict USGross. Parts of the regression output computed in Excel look like this:
Dependent variable is: USGross($)
R squared = 47.4% R squared (adjusted) = 46.0%
s = 46.41 with 120 - 4 = 116 degrees of freedom

a) Write the multiple regression equation.
b) What is the interpretation of the coefficient of Budget in this regression model?

Transcribed Image Text:

USGross BRun Time (SM) Movie White Noise Coach Carter Elektra Racing Stripes Assault on Precinct 13 Are We There Yet? Alone in the Dark Indigo (SM) 56.094360 67.264877 24.409722 49.772522 20.040895 82.674398 5.178569 51.100486 (minutes) Stars 101 136 100 30 109 105 3.5 Variable Coefficient SE(Coeff) t-ratio P-value Intercept -22.9898 25.70 -0.895 0.3729 Budget(s) 1.13442 0.1297 8.75 <0,0001 Stars Run Time0.403296 0.25131.60 0.1113 24.9724 5.884 4.24 <0.0001