Chapter 12.1 to 12.3, and portions of 12.6 Scenario 7 A company that has the dis

Question

Chapter 12.1 to 12.3, and portions of 12.6 Scenario 7 A company that has the distribution rights to home DvD sales of previously released movies would like to use the box office gross (in dollars) to estimate the number of DvDs that it can expect to sell. Following is the output from a simple linear regression analysis. Gross is the x variable and DvDs is the y variable. Assume a 0.05 level of significance ( = 0.05). Note that "Significance F" in the output below is the p value Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations 0.8531 0.7278 0.7180 47.8668 30 ANOVA df MS Significance F 74.8505 0.00000000213 171499.78 64154.42 235654.20 171499.78 Regression Residual Total 2291.23 28 29 Upper 95% 100.7716 5.3590 P-value lower 95% Coefficients 76.5351 4.3331 t Stat 6.4686 0.000000524 8.6516 0.00000000213 3.3072 Standard Intercept Gross Error 11.8318 0.5008 52.2987

Explanation / Answer

Here

Y: no of DVD sale

X:box office gross

Here R2 = 0.7278

It indicates that approx 72.78% of variation in y is explained by x

i.e 72.78% of the variation in the DVD units sold can be explained bythe variation in the box office gross.   

Answer is C.

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