Question: For the same regression as in Exercise 9, the Cooks Distances look like this: The outlier, once again, is John Carter, whose budget was more
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The outlier, once again, is John Carter, whose budget was more than $200M more than its gross revenue in the U.S. Setting this movie aside and rerunning the regression from Exercise 8, we find:
Dependent variable is: US Gross ($M)
R-squared = 0.4635, Adjusted R-squared: 0.4478
s = 53.89 with 106 - 3 = 103 degrees of freedom
-2.png)
a) What are the main differences between this model with John Carter removed and the model from Exercise 7 with it included?
b) Which model do you prefer? Explain briefly.
100 60 20 0.00 0.2 4 0.6 08 1.0 12 Cook's Distance Variable Coefficient SE(Coeff) t-ratio P-value Intercept 21.6562 Budget R Rating 22.2916 17.6 Budget*R 10.2755 0.1188 941 2.108 0.0375 1.260 0.2106 -2.53 0.0129 1.0224 8.607 U.0u Rating -0.9001 0.3556
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