Practice Exam Question 4

4A: The intercept is the average OpeningWeekend value for Fox Action movies. It is meaningful as this is just finding a combination of categories.

4B:

FoxAction = 36.15

FoxComedy 36.15 - 25.69

ParamountAction 36.15 + 14.69

ParamountComedy 36.15 + 14.69 - 25.69

4C: It is Plot A. Using the plot of Fox and Paramount movies on Page 5, we can see most movies are being overpredicted (=> negative residuals) with a few movies with large underpredictions (=> large positive residuals). This corresponds to plot A.

4D: -21.48 is the predicted OpeningWeekend revenue (million $) for a Fox Action movie with 0 theaters for the opening weekend. Not meaninfgul. The revenue probably cannot be negative. Realistically, there won’t every be 0 theaters showing the movie on the opening weekend.

4E: Both models have very small p-values (indicating significant fits), but the R2 for the model with TheatersOpenWeek is much higher, so we would prefer that one.