Reference no: EM13371363
1. Jean Siskel is an entertainment analyst for West Coast Securities. He is trying to develop a model to estimate gross earning generated by a new movie release. He has collected the following data on 20 movies: Gross Earnings, Production Costs, Promotion Costs, and if the movie is based on a bestseller novel:

Gross Earnings

Production Cost

Promotion Cost


Movie

Millions $

Millions $

Millions $

Novel

1

28

4.2

1

0

2

35

6

3

1

3

50

5.5

6

1

4

20

3.3

1

0

5

75

12.5

11

1

6

60

9.6

8

1

7

15

2.5

0.5

0

8

72

10

12

1

9

45

6.4

8

1

10

37

7.5

5

0

11

30

5.0

1

1

12

63

10.1

10

0

13

58

7.8

9

1

14

50

6.9

10

0

15

24

3.5

4

0

16

82

11.0

15

1

17

48

10.7

1

1

18

34

6.6

2

0

19

50

8.4

3

1

20

45

10.8

5

0

a. What type of variable is novel?
b. What is the estimated multiple linear regression equation derived from this data?
c. What are the regression coefficients for each X variable? Interpret the regression coefficient.
d. Will Jean be pleased with the results?
e. Interpret the intercept value.
2. The following data represent revenues in thousands of dollars for a manufacturer of small electric appliances.
Year

Quarter

Revenues

1996

1

514

1996

2

822

1996

3

648

1996

4

976

1997

1

616

1997

2

884

1997

3

678

1997

4

996

1998

1

658

1998

2

850

1998

3

714

1998

4

1052

a) Calculate the moving averages for this time series.
b) Find the seasonal index for each quarter.
c) From the fourth quarter of 1997 to the first quarter of 1998, revenues declined. What happened on a seasonally adjusted basis?
d) Compute the forecast for the second quarter of 2002. extra credit Find the regression equation to predict the long term trend in the seasonally adjusted revenues.
3. Bay Area University enrolls MBA students in three cohort programs: Weeknight, Saturday, and Distance. Dean Ed Epstein wants to know if there is a difference in the average of the students in the three programs. He has his assistant take a random sample of 5 students from each program and record their ages.
Weeknight

Saturday

Distance

29

32

25

27

33

24

30

31

24

27

34

25

28

30

26

a) State the Null hypothesis and the Research hypothesis to be tested
b) Calculate the F statistic.
c) Should the Null hypothesis be rejected at the 5% level of significance?
d) Draw box plots for the different programs.
e) Using the leastsignificant difference test, identify the significant differences between the programs.