Data for this exercise includes a sample of movies and attributes of each movie. The purpose is to evaluate factors that are related to movies' success. Success is measured as Gross Income for the movie in the US.

1. Develop the Simple Linear Regression where a movie's production budget is used to forecast Domestic Gross Revenue. State the estimated regression model. Is this regression statistically significant? Justify your answer using statistical arguments.

Develop the Multiple Linear Regression where a movie's production budget

and genre are used to forecast Domestic Gross Revenue. A few notes: You have to develop the corresponding Indicator (0/1) variables for the different genres. Use the genre of Drama as your base (omitted) category. State the estimated regression model.

c.Use the model of part (c.) in order to Predict Gross Domestic Revenue for a movie with a production budget of $50,000,000 for each of the 5 genres.

1. Include an interaction term between Budget and Action and test its statistical significance.
2. :Use the model of part (c.) in order to evaluate the statistical significance of the individual variables. This analysis should inform you in answering the following question. What is the expecteddifferencein Gross Domestic Revenue between the different genres? Justify your answer using statistical arguments. Hint: think how to incorporate a variable's statistical significance into this answer.
3. In the model of part (c.) add a quadratic term of the budget variable. Is the quadratic term improving the model? Explain your answer.
4. Assume a 0.05 significance level.