Chapter 3, Problem 2CP

Motion Picture Industry

The motion picture industry is a competitive business. More than 50 studios produce several hundred new motion pictures each year, and the financial success of the motion pictures varies considerably. The opening weekend gross sales, the total gross sales, the number of theaters the movie was shown in, and the number of weeks the motion picture was in release are common variables used to measure the success of a motion picture. Data on the top 100 grossing motion pictures released in 2011 (Box Office Mojo website, March 17, 2012) are contained in a file named 2011Movies. Table 3.10 shows the data for the first 10 motion pictures in this file. Note that some movies, such as War Horse, were released late in 2011 and continued to run in 2012.

TABLE 3.10 PERFORMANCE DATA FOR 10 MOTION PICTURES

Managerial Report

Use the numerical methods of descriptive statistics presented in this chapter to learn how these variables contribute to the success of a motion picture. Include the following in your report:

1. 1. Descriptive statistics for each of the four variables along with a discussion of what the descriptive statistics tell us about the motion picture industry.
2. 2. What motion pictures, if any, should be considered high-performance outliers? Explain.
3. 3. Descriptive statistics showing the relationship between total gross sales and each of the other variables. Discuss.