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A company that holds the DVD distribution rights to movies previously released only in
theaters has the business objective of developing estimates of the sales revenue of DVDs.
Toward this goal, a company analyst plans to use box office gross to predict DVD sales
revenue. For 43 movies, the analyst collects the box office gross (in $millions) in the year
that they were released and the DVD revenue (in $millions) in the following year. Data is
stored in the file “Movie”.
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5
0 Frequency
100
150
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0
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More
Bin
Scatter Plot
100.00
90.00
DVD Revenue ($millions)
80.00
70.00
60.00
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40.00
30.00
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0.00
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Movie Gross ($millions)
TA: Kara Olsen Business Analytics II
b0 = 4.844
b1 = 0.163
For each increase of $1 million of box office gross, the predicted DVD revenue is
estimated to increase by $0.163 million.
5. Predict the mean sales revenue for a movie DVD that had a box office gross of $100
million.
6. What conclusions can you reach about predicting DVD revenue from movie gross?
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-30
Gross