Question

The following output may be used in several questions. A movie industry analyst is interested in predicting box office revenue revenue") in millions of dollars using the production budget ("budget"), also in millions of dollars. A simple linear regression model has been fit. The output is shown below, with some missing values indicated by shaded areas Regression Statlstics Multiple R 0.626 R Square 0.392 Adjusted R Square 0.387 Standard Error 49.458 Observations 120 ANOVA Signficance F df SS MS F Regression 1 196158.00 186158 288036.19 Residual 118 244G.009 Total 119 474794.20 Cooffclents Standard Error P-vakue Stat Lower 95% Uppar 95% a942 Intercept 7.032 7.464 0.348 7.750 21.813 budgat 1.109 0.127 Refer to the output of the simple linear regression model to predict movie revenue using budget. At the = 0,05 level, what would be the test statistic and the conclusion of the test of the hypotheses shown below in the context of the problem? Read carefully a.t 0.860. Rejecto We can conclude that the budget is not equal to 0. b.t 0.860. Fail to reject o We cannot conclude that the mean revenue and the budget of movies are equal c. t0.860. Fail to rejecto We cannot conclude that there is a linear relationship between budget and revenue. d.t 8.73. Rejecto We cannot conclude that budget is potentially useful for predicting revenue. e.t 8.73. Rejecto We can conclude that budget is potentially useful for predicting revenue.

Answer 1

Correct Answer: e. t = 8.73. Reject H. We can conclude that budget is potentially useful for predicting revenue.