# Can you use movie critics opinions to forecast box office receipts on the opening weekend? The following data, stored in

## Question:

Can you use movie critics’ opinions to forecast box office receipts on the opening weekend? The following data, stored in Tomatometer , indicate the Tomatometer rating, the percentage of professional critic reviews that are positive, and the receipts per theater ($thousands) on the weekend a movie opened for ten movies:

a. Use the least-squares method to compute the regression coefficients b_{0} and b_{1}.

b. Interpret the meaning of b_{0} and b_{1} in this problem.

c. Predict the mean receipts for a movie that has a Tomatometer rating of 55%.

d. Should you use the model to predict the receipts for a movie that has a Tomatometer rating of 5%? Why or why not?

e. Determine the coefficient of determination, r^{2}, 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 Tomatometer rating and receipts?

h. Construct a 95% confidence interval estimate of the mean receipts for a movie that has a Tomatometer rating of 55% and a 95% prediction interval of the receipts for a single movie that has a Tomatometer rating of 55%.

i. Based on the results of (a)–(h), do you think that Tomatometer rating is a useful predictor of receipts on the first weekend a movie opens? What issues about these data might make you hesitant to use Tomatometer rating to predict receipts?

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**Related Book For**

## Basic Business Statistics Concepts And Applications

**ISBN:** 9780134684840

14th Edition

**Authors:** Mark L. Berenson, David M. Levine, Kathryn A. Szabat, David F. Stephan

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