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A linear relationship between twitter activity and receipts

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Reference no: EM13801314

Can you use Twitter activity to forecast box office receipts on the opening weekend? The data are stored in TwitterMovies.

A) Use the least-squares method to compute the regression coefficients b0 and b1.

B) Interpret the meaning of b0 and b1 in this problem.

C) Predict the receipts for a movie that has a Twitter activity of 100,000.

D) Should you use the model to predict the receipts for a movie that has a Twitter activity of 1,000,000? Why or Why not?

E) Determine the coefficient of determination, r2, and explain its meaning in this problem.

F) Perform a residual analysis. Is there any evidence of a linear relationship between Twitter

activity and receipts?

G) At the 0.05 level of significance, is there any evidence of a linear relationship between Twitter activity and receipts?

H) Construct a 95% confidence interval estimate of the mean receipts for a move that has a Twitter activity of 100,000 and a 95% prediction interval of the receipts for a single movie that has a Twitter activity of 100,000.

I) Based on the results of (a) through (h), do you think that Twitter activity is a useful predictor of receipts on the first weekend a movie opens? What issues about these data might make you

hesitant to use Twitter activity to predict receipts?

Reference no: EM13801314

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