Movie companies need to predict the gross receipts of individual movies once a movie has debuted. The data, shown below and stored in PotterMovies , are the first weekend gross, the U.S. gross, and the worldwide gross (in $ millions) of the eight Harry Potter movies:

a. Compute the covariance between first weekend gross and U.S. gross, first weekend gross and worldwide gross, and U.S. gross and worldwide gross.

b. Compute the coefficient of correlation between first weekend gross and U.S. gross, first weekend gross and worldwide gross, and U.S. gross and worldwide gross.

c. Which do you think is more valuable in expressing the relationship between first weekend gross, U.S. gross, and worldwide gross—the covariance or the coefficient of correlation? Explain.

d. Based on (a) and (b), what conclusions can you reach about the relationship between first weekend gross, U.S. gross, and worldwide gross?

Transcribed Image Text:

First Weekend U.S. Worldwide Title Gross Gross Sorcerer's Stone 90.295 317.558 976.458 Chamber of Secrets Prisoner of Azkaban Goblet of Fire Order of the Phoenix Half-Blood Prince Deathly Hallows Part 1 Deathly Hallows Part 2 88.357 261.988 878.988 93.687 249.539 795.539 896.013 102.335 290.013 77.108 292.005 938.469 77.836 301.460 934.601 955.417 125.017 295.001 169.189 381.011 1,328.111