Rec 5 Regression with StatCrunch and Two Way Tables

STAT 1430 Recitation 5 Regression with StatCrunch and Two-way Tables Part 1: Regression with StatCrunch Nash Information Services provides information and analytical services to the movie industry, including analyses to predict movie revenue. To study movie revenue, they chose a simple random sample of 40 movies released over a 5-year period (2003-2008), and collected data on each movie. We can use this data to predict movie revenues for future movies. This data set is listed in the Recitation 5A section of Carmen as “BoxOffice.xls”. It is an Excel file. It needs to be put into StatCrunch. Putting the Data into a Stat Crunch Spreadsheet from Another Software Package 1. Log into MyStatLab 2. Click on the Stat 1430 course 3. Click on StatCrunch on the left side menu. 4. Click on “Visit the StatCrunch website ” 5. Click on “OPEN STATCRUNCH” on the menu bar at the very top. This will open a blank spreadsheet for you to enter data into. 6. Go to the BoxOffice.xls file on Carmen and COPY all the information, including the top row where the variable names are. 7. Go to the StatCrunch empty spreadsheet, click on the top left corner where “var 1” is listed, and PASTE. The entire data set should now be in the StatCrunch spreadsheet. The variable names (left to right) are the following. ( Note: money is in millions of dollars. )  Title : the name of the movie  USRelease : the date the movie was first shown  Genre : what type of movie is it?  Rating : what age group can see the movie  Rating1 : whether or not there are age restrictions for the movie (1=yes,0=no)  Budget : cost to make the movie  Opening : total box office revenue during opening weekend  Theaters : number of theaters showing the movie during opening weekend.  IntRevenue : entire amount of money made outside the U.S.  USRevenue : entire amount of money the movie made in the United States during the entire time it was shown  WorldRevenue : entire amount of money made both in and out of U.S.  Profit : whether movie made a profit (1=yes, 0=no) Let’s suppose we ultimately want to predict box Total U.S. Box Office Revenue for a movie, using data from these previous movies. We start by looking for variables with which it has a strong relationship. (Remember, we can only look for linear relationships in this class.) 1. X and Y variables

STAT 1430 Recitation 5 Regression with StatCrunch and Two-way Tables a. Why is Total U.S. Box Office Revenue considered the “Y” (dependent) variable in this case? i. Total U.S Box Office Revenue is considered the Y value because it is the outcome or the variable we are trying to predict or explain. b. We need to find an appropriate X (independent) variable to help us predict Total U.S. Box Office Revenue. Which of the variables in this data set are eligible as potential candidates? (Note only certain types of variables can qualify for this type of analysis.) i. Potential Candidates for X include budget, opening, theatres, and IntRevenue. These are all quantitative and have a direct impact on revenue. 2. Explain why Total World Box Office Revenue wouldn’t be a fair variable to use to predict Total U.S . Box Office Revenue. (You can then cross it off your list above). a. You could not use the Total World Box Office Revenue because it includes the U.S Box Office Revenue which is what we are trying to test for. 3. Relationships b. To look for potential relationships that any of these variables have with Total U.S. Box Office Revenue, use StatCrunch to make the appropriate scatterplots. Copy/Paste them below. Be sure to include titles and axis names. Don’t spend too much time making them perfect, but try to capture the general shape of the scatterplot calculate the appropriate correlations to quantify these relationships. Label and INTERPRET each correlation, using the 3 items we learned in lecture.

STAT 1430 Recitation 5 Regression with StatCrunch and Two-way Tables . TO MAKE SCATTERPLOTS IN STATCRUNCH: -Go to GRAPHS/SCATTER PLOT. -Choose the X (independent) variable from the drop down menu (for example Budget) -Choose the Y (dependent) variable from the drop down menu (Total U.S. Box Office Rev.) -Click COMPUTE! c. Now use StatCrunch to calculate the appropriate correlations to quantify these relationships. Label and INTERPRET each correlation, using the 3 items we learned in lecture.