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Question: The National Association of Theatre Owners is the largest exhibition trade organization in the world, representing more than 26,000 movie screens in all 50 states and in more than 20 countries worldwide. Its membership includes the largest cinema chains and hundreds of independent theatre owners. It publishes statistics concerning the movie sector of the economy. The file titled Flicks contains data on total U.S. box office grosses ($billion), total number of admissions (billion), average U.S. ticket price ($), and number of movie screens.
a. Construct a regression equation in which total U.S. box office grosses are predicted using the other variables.
b. Determine if the overall model is significant. Use a significance level of 0.05.
c. Determine the range of plausible values for the change in box office grosses if the average ticket price were to be increased by $1. Use a confidence level of 95%.
d. Calculate the variance inflation factor for each of the independent variables. Indicate if multicollinearity exists between any two independent variables. e. Produce the regression equation suggested by your answer to part d.
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