In Problem, you used box office gross to predict DVD revenue. Perform a residual analysis for these data (stored in Movie). Based on these results, evaluate whether the assumptions of regression have been seriously violated.
Problem
A company that holds the DVD distribution rights to movies previously released only in theaters has the business objective of developing estimates of the sales revenue of DVDs. Toward this goal, a company analyst plans to use box office gross to predict DVD sales revenue. For 22 movies, the analyst collects the box office gross (in $millions) in the year that they were released and the DVD revenue (in $millions) in the following year. The data are shown below and stored in Movie.
Title | Gross | DVD Revenue |
Bolt | 109.92 | 81.60 |
Madagascar: Escape 2 Africa | 177.02 | 107.54 |
Quantum of Solace | 166.82 | 44.41 |
Beverly Hills Chihuahua | 93.78 | 60.21 |
Marley and Me | 106.66 | 62.82 |
High School Musical 3 Senior Year | 90.22 | 58.81 |
Bedtime Stories | 85.54 | 48.79 |
Role Models | 66.70 | 38.78 |
Pineapple Express | 87.34 | 44.67 |
Eagle Eye | 101.40 | 34.88 |
Fireproof | 33.26 | 31.05 |
Momma Mia! | 144.13 | 33.14 |
Seven Pounds | 60.15 | 27.12 |
Australia | 46.69 | 28.16 |
Valkyrie | 60.73 | 26.43 |
Saw V | 56.75 | 26.10 |
The Curious Case of Benjamin Button | 79.30 | 42.04 |
Max Payne | 40.68 | 25.03 |
Body of Lies | 39.32 | 21.45 |
Nights in Rodanthe | 41.80 | 17.51 |
Lakeview Terrace | 39.26 | 21.08 |
The Spirit | 17.74 | 18.78 |
Sources: Data extracted from www.the-numbers.com/market/movies2008.php; and www.the-numbers.com/dvd/charts/annual/2009.php.
For these data,
a. construct a scatter plot.
b. assuming a linear relationship, use the least-squares method to determine the regression coefficients b0 and b1
c. interpret the meaning of the slope, b1, in this problem.
d. predict the sales revenue for a movie DVD that had a box office gross of $75 million.
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