Question

Movie	Twitter Activity	Receipts
The Devil Inside	219509	14763
The Dictator	6405	5796
Paranormal Activity 3	165128	15829
The Hunger Games	579288	36871
Bridesmaids	6564	8995
Red Tails	11104	7477
Act of Valor	9152	8054

1. What is the independent variable (X) and what is the dependent variable (y)?
2. Write a null and alternative hypothesis statement
3. What is the R-squared value and interpret its meaning?
4. What is the correlation coefficient and interpret its meaning?

Answer 1

a)

Independent variable (x) = Twitter Activity

Dependent variable (y) = Reciepts

b)

Null hypotheses: There is no relation between Twitter activity and Receipts

Alternate hypotheses: There is a relation between Twitter activity and Receipts

c)

R-squared value = 0.9879^2 = 0.9759

Since, the R-squared value is positive and almost 1 means that the linear model fits well for this set of observations

d) Correlation Coefficient = r = 0.9879

Correlation coefficient is closer to 1. So, there is a strong positive correlation between twitter activity and the receipts.