Forecasting movie revenues with Twitter. Refer to the IEEE International Conference...

Forecasting movie revenues with Twitter. Refer to the IEEE International Conference on Web Intelligence and Intelligent Agent Technology (2010) study of how social media (e.g., Twitter.com) may influence the products consumers buy, Exercise 9.36 (p. 518). Recall that opening weekend box office revenue (in millions of dollars) and tweet rate (average number of tweets referring to the movie per hour) were collected for a sample of 24 recent movies. The data are reproduced in the next table. Use simple linear regression to find a 90% prediction interval for the revenue (y) of a movie with a tweet rate (x) of 150 tweets per hour. Give a practical interpretation of the interval.

Reference: Exercise 9.36

Forecasting movie revenues with Twitter. Marketers are keenly interested in how social media (e.g., Facebook, Twitter) may influence consumers who buy their products. Researchers at HP Labs (Palo Alto, CA) investigated whether the volume of chatter on Twitter. com could be used to forecast the box office revenues of movies (IEEE International Conference on Web Intelligence and Intelligent Agent Technology, 2010). Opening weekend box office revenue data (in millions of dollars) were collected for a sample of 24 recent movies. In addition, the researchers computed each movie’s tweet rate, i.e., the average number of tweets (at Twitter.com) referring to the movie per hour one week prior to the movie’s release. The data (simulated based on information provided in the study) are listed in the table. Assuming that movie revenue and tweet rate are linearly related, how much do you estimate a movie’s opening weekend revenue to change as the tweet rate for the movie increases by an average of 100 tweets per hour?