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Question 1.
Some experts on the film industry state that the industry historically returns 12 per cent a year. The table includes the U.S. return on investment (ROI) (defined as the difference between total US box- office gross and budget divided by budget, ignoring any discounting) for each movie in the data set.
Provide a 95 per cent interval for the mean US ROI of movies.
Question 2.
Run a test to see if the US ROI is significantly larger than the 12 per cent cited (Ho: mu<=0.12) Generate a model to help understand and predict the total US Box-office gross of movies prior to selection. It is up to you to decide how many variables and which variables to use. You are 100% free to build your own model. We do not expect to find two identical models.
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