What can predict how much a motion picture will make? We have data on a number of recent releases that includes the US Gross (in $M), the Budget ($M), the Run Time (minutes), and the average number of Stars awarded by reviewers. The first several entries in the data table look like this:

We want a regression model to predict US Gross. Parts of the regression output computed in Excel look like this:
Dependent variable is-. US Gross ($)
R squared = 47.4% R squared (adjusted) = 46.0%
s = 46.41 with 120 - 4 = 116 degrees of freedom

a) Write the multiple regression equation.
b) What is the interpretation of the coefficient of Budget in this regression model?

Transcribed Image Text:

USGross Budget Run Time (SM) 30 45 65 30 30 Movie (SM) (minutes) Stars 56.094360 Coach Carter 67.264877 24.409722 Racing Stripes 49.772522 20.040895 101 136 100 110 109 White Noise Elektra Assault on Precinct 13 Are We There 20 82.674398 5.178569 51.100486 Yet? Alone in the 20 96 Dark Indigo 25 105 3.5 Variable Coeficient SE(Coeff) tratio P-value Intercept-22.9898 25.70 0.895 0.3729 Budget(S) 1.13442 0.1297 8.75 0.0001 Stars Run Time -0.403296 0.2513 -1.60 0.1113 24.9724 5.884 4.24 <0.0001