Week 3 Project - STAT 3001

Student Name:

This assignment is worth a total of 60 points. Your work will be evaluated according to the following rubric.

Grading / Excellent / Meets Standard / Developing
Solutions are Correct
(20 points) / I will select 10 answers within the assignment to evaluate for correctness. Each question will be worth 2 points.
Explanations
(20 points) / If you attempt the question and explain it well, you will receive credit for it (even if the answer is incorrect).
Academic Literacy
(20 points) / Your assignment should be prepared using correct grammar and punctuation. Your work should have a professional appearance.

While arriving at the correct solution for a task or problem is important, the primary purpose of this assignment is for you to demonstrate that you understand the process of completing the task or problem by providing a clear explanation and showing the steps necessary to complete the task or solve the problem.

You may place your answers directly into this document. You will notice that your answers automatically will appear in RED. (That makes it easier for me to grade).

Before you begin this assignment, you will need to download and install STATDISK [Version 11] on your computer, using the instructions in the STATDISK User Manual.

1.  Open the STATDISK program, then open the data file MOVIES. This file contains some information about a collection of movies. Would you consider this data to be a sample or a population? If it’s a sample, what would be the population it represents? If it is a population, what would be an appropriate sample? Explain fully.

Answer:

Part II. ScatterPlots

2.  Create a scatterplot for the data in the BUDGET and GROSS columns. Paste it here. /
3.  Create a scatterplot for the data in the Budget and the Viewer Rating columns /
4.  What can you conclude based on these scatterplots?

Part III. Correlation

5.  Find the linear correlation between the data in the Budget and Gross columns.
6.  Explain the mathematical relationship between Budget costs and Gross Earnings of the movies based on the linear correlation coefficient. Be certain to include comments about the magnitude and the direction of the correlation
7.  Find the linear correlation between the data in the Budget and Viewer Rating columns.
8.  Compare and contrast these two relationships:
BUDGET and GROSS
BUDGET and RATING
How are they similar? How are they different?
[Hint: Read Page 290 “Types of Correlation”]

Part IV. Simple Regression

Let’s say that we wanted to be able to predict the GROSS earnings (in millions of dollars) for an upcoming movie based on the BUDGET (in millions of dollars) spent on the movie. Using this sample data, perform a simple-regression to determine the line-of-best fit. Use the BUDGET as your x (independent) variable and GROSS as your y (response) variable.

9.  Paste your regression results here (Note: This is not a scatterplot):

Answer the following questions related to this simple regression

10.  What is the equation of the line-of-best fit? [Note: y=mx + b is a general equation of a line. We are looking for a particular equation here based on the above regression.]
11.  What does the slope of the above line tell you about the relationship between the BUDGET and GROSS data? Be sure to specify the proper units.
[Hint: remember that both variables are measured in millions of dollars.]
12.  What is the y-intercept of the line? What does it tell you about the relationship between the BUDGET and GROSS data?
13.  What would you predict for the GROSS earnings of a movie for which the BUDGET is 35 million dollars?
14.  Let’s say you run out of money making the movie and you have to reduce your BUDGET by 5 million dollars. What effect would you predict this would have on the GROSS earnings of the movie?
15.  Find the coefficient of determination (R2 value) for this data. What does this tell you about this relationship?
[Hint: see definition on Page 311.]

Part V. Multiple Regression

Let’s say that we wanted to be able to predict the GROSS earnings (in millions of dollars) for an upcoming movie based on three variables:

·  BUDGET (in millions of dollars) spent on the movie

·  LENGTH (in minutes) of the movie

·  VIEWER RATING

Using this sample data, perform a multiple-regression using BUDGET, GROSS, LENGTH, and VIEWER RATING. Select GROSS (Column 5) as your Dependent variable.

16.  Paste your results here:

17.  What is the equation of the line-of-best fit? The form of the equation is Y = bo + b1X1 + b3X3 + b2X2 (fill in values for bo, b1, b2, and b3).
[Round coefficients to 2 decimal places.]
18.  What would you predict for the GROSS earnings of a movie for which
·  BUDGET is 35 million dollars
·  LENGTH is 130 minutes
·  VIEWER RATING is 7.5
19.  What is the R2 value for this regression? What does it tell you about the regression?

April 2013Page 1