Question

Find the regression equation (rounding values to 2 places), letting the first variable be the independent variable x.

Use the regression equation values to find the best predicted gross amount for a movie with a budget of 65 million dollars. Hint: Use the exact regression values to find an accurate predicted value and then round your answer.

In the table below, all amounts are in millions of dollars.

Budget	92	196	38	77	74	95	62	74
Gross	66	608	54	48	50	55	56	64

=	+   x
65 =

Answer 1

Solution :

Given that,

Budget   x as 92   196 38 77 74 95   62 74

Gross y as 66 608 54 48 50 55 56 64

=> The equation of the regression line is y = −216.64 + 3.86*x (rounded)

=> The best predicted gross amount for a movie with a budget of 65 million dollars is

=> y(65) = −216.639 + 3.862*65 = 34.391 = 34.39 (rounded)