File 5.6 : Data Mining Goes For Hollywood : Predicting Financial Success Of Movies

1325 Words Feb 10th, 2016 6 Pages
Application 5.6: Data Mining Goes to Hollywood: Predicting Financial Success of Movies
1. Why Hollywood Decision Makers use Data Mining
Hollywood Decision Makers should use data mining because there is more need for quality data sources that have more quality in order to depict enhanced patterned analysis. It is also through data mining that all decision makers can be able to make use of predictors in order to build models that have the ability of forecasting the box office receipts (Turban, Sharda, & Delen, 2010). Certainty can greatly be enhanced through the utilization of data mining thus improving the financial success of the industry through evaluation of trade offs in the movie production. In essence, data mining is important for the decision makers because of:
• It both supports and enhances predictability especially when it has been known well enough regarding the situation in identification of independent variables (predictors) and in building a model.
• It enhances accuracy of predicting the “box-office receipts” which are quite critical to their general financial success.
• Decisions are normally based on the “data-driven forecasting models” and on classification models as opposed on wild guesses and hunches.
• Predictive models are quite effective during the early stages in movie production especially before the making of huge investments.
• Minimization of flops in investments greatly improves profitability.
2. Top Challenges for Hollywood Managers

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