Can you use Twitter activity to forecast box office receipts on the opening weekend? The following data
Question:
a. Use the least-squares method to compute the regression coefficients b0 and b1.
b. Interpret the meaning of b0 and b1 in this problem.
c. Predict the receipts for a movie that has a Twitter activity of 100,000.
d. Should you use the model to predict the receipts for a movie that has a Twitter activity of 1,000,000? Why or why not?
e. Determine the coefficient of determination, r2, and explain its meaning in this problem.
f. Perform a residual analysis. Is there any evidence of a pattern in the residuals? Explain.
g. At the 0.05 level of significance, is there evidence of a linear relationship between Twitter activity and receipts?
h. Construct a 95% confidence interval estimate of the mean receipts for a movie that has a Twitter activity of 100,000 and a 95% prediction interval of the receipts for a single movie that has a Twitter activity of 100,000.
i. Based on the results of (a)-(h), do you think that Twitter activity is a useful predictor of receipts on the first weekend a movie opens? What issues about these data might make you hesitant to use Twitter activity to predict receipts?
Step by Step Answer:
Statistics For Managers Using Microsoft Excel
ISBN: 9780133130805
7th Edition
Authors: David M. Levine, David F. Stephan, Kathryn A. Szabat