Reference no: EM132372774
1. Movie companies need to predict the gross receipts of individual movies after a movie has debuted.
The accompanying results are the first weekend? gross, the national? gross, and the worldwide gross? (in millions of? dollars) of six movies. Complete parts? (a) through? (d) below.
Gross receipts of six movies
Title First Weekend National Gross Worldwide Gross
Movie A 90.387 317.933 976.166
Movie B 88.782 261.587 878.598
Movie C 93.733 249.084 795.731
Movie D 102.466 290.211 896.759
Movie E 77.315 292.325 938.727
Movie F 77.968 301.338 934.043
a. Compute the covariance between first weekend gross and national? gross, first weekend gross and worldwide? gross, and national gross and worldwide gross.
Compute the covariance between first weekend gross and national gross.
?cov(X,Y)= _____________ ?(Round to four decimal places as? needed.)
Compute the covariance between first weekend gross and worldwide gross.
?cov(X,Y)=_________ ?(Round to four decimal places as? needed.)
Compute the covariance between national gross and worldwide gross.
cov(X,Y)=_________ ?(Round to four decimal places as? needed.)
b. Compute the coefficient of correlation between first weekend gross and national? gross, first weekend gross and worldwide? gross, and national gross and worldwide gross.
Compute the coefficient of correlation between first weekend gross and national gross.
R= ___________(Round to four decimal places as? needed.)
Compute the coefficient of correlation between first weekend gross and worldwide gross.
R= ___________(Round to four decimal places as needed.)
Compute the coefficient of correlation between national gross and worldwide gross.
R= ___________(Round to four decimal places as needed.)
c. Which is more valuable in expressing the relationship between first weekend? gross, national ? gross, and wordwide? gross, the covariance or the coefficient of? correlation? Explain.
A. The correlation coefficient is more valuable for expressing the relationship between first weekend? gross, national? gross, and worldwide gross because it does not depend on the units used to measure first weekend? gross, national? gross, and worldwide gross.
B. The covariance is more valuable for expressing the relationship between first weekend? gross, national? gross, and worldwide gross because it measures the relative strength between first weekend? gross, national? gross, and worldwide gross.
C. The correlation coefficient is more valuable for expressing the relationship between first weekend? gross, national? gross, and worldwide gross because it can prove that there is a causation effect between first weekend? gross, national? gross, and worldwide gross.
d. Based on? (a) and? (b), what conclusions can be reached about the relationship between first weekend? gross, national? gross, and worldwide? gross?
A. There is a weak negative linear relationship between first weekend gross and both national gross and worldwide gross. There is a strong positive linear relationship between national gross and worldwide gross.
B. There is a strong negative linear relationship between first weekend gross and both national gross and worldwide gross. There is a strong positive linear relationship between national gross and worldwide gross.
C. There is a weak positive linear relationship between first weekend gross and both national gross and worldwide gross. There is a strong negative linear relationship between national gross and worldwide gross.