8.Jean Siskel is an entertainment analyst for West Coast Securities. He is trying to develop a model to estimate gross earning generated by a new movie release. He has collected the following data on 20 movies: Gross Earnings, Production Costs, Promotion Costs, and if the movie is based on a bestseller novel: (12 pts)
Gross Earnings
Production Cost
Promotion Cost
Movie
Millions $
Millions $
Millions $
Novel
1
28
4.2
1
0
2
35
6
3
1
3
50
5.5
6
1
4
20
3.3
1
0
5
75
12.5
11
1
6
60
9.6
8
1
7
15
2.5
0.5
0
8
72
10
12
1
9
45
6.4
8
1
10
37
7.5
5
0
11
30
5.0
1
1
12
63
10.1
10
0
13
58
7.8
9
1
14
50
6.9
10
0
15
24
3.5
4
0
16
82
11.0
15
1
17
48
10.7
1
1
18
34
6.6
2
0
19
50
8.4
3
1
20
45
10.8
5
0
a. What type of variable is novel?
b. What is the estimated multiple linear regression equation derived from this data?
c. What are the regression coefficients for each X variable? Interpret the regression coefficient.
d. Will Jean be pleased with the results?
e. Interpret the intercept value.
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