A financier whose specialty is investing in movie productions has observed that,in general,movies with "big-name" stars seem to generate more revenue than those movies whose stars are less well known.To examine his belief he records the gross revenue and the payment (in $ millions)given to the two highest-paid stars in the movie for ten recently released movies.
$\begin{array} { | c | c | c | } \hline \text { Movie } & \text { Cost of Twa Highest } & \text { Gross ravanue } \\&\text { Paid Stars }&\\\hline 1 & 5.3 & 4 8 \\2 & 7.2 & 65 \\3 & 1.3 & 1 8 \\4 & 1.8 & 20 \\5 & 3.5 & 31 \\6 & 2.6 & 26 \\7 & 8.0 & 73 \\8 & 2.4 & 23 \\9 & 4.5 & 39 \\10 & 6.7 & 5 8 \\\hline\end{array}$ Assume that the conditions for the conducting tests of hypotheses for $\rho$ and $\rho$ ₁ (the two tests are identical)are not met.Do the data allow us to infer at the 5% significance level that payment to the two highest paid stars and gross revenue are linearly related?

Question

A financier whose specialty is investing in movie productions has observed that,in general,movies with "big-name" stars seem to generate more revenue than those movies whose stars are less well known.To examine his belief he records the gross revenue and the payment (in $ millions)given to the two highest-paid stars in the movie for ten recently released movies.

\begin{array} { | c | c | c | } \hline \text { Movie } & \text { Cost of Twa Highest } & \text { Gross ravanue } \\&\text { Paid Stars }&\\\hline 1 & 5.3 & 4 8 \\2 & 7.2 & 65 \\3 & 1.3 & 1 8 \\4 & 1.8 & 20 \\5 & 3.5 & 31 \\6 & 2.6 & 26 \\7 & 8.0 & 73 \\8 & 2.4 & 23 \\9 & 4.5 & 39 \\10 & 6.7 & 5 8 \\\hline\end{array}

Assume that the conditions for the conducting tests of hypotheses for

\rho

and

\rho

₁ (the two tests are identical)are not met.Do the data allow us to infer at the 5% significance level that payment to the two highest paid stars and gross revenue are linearly related?

Quizplus · Accepted Answer

The Answer of A financier whose specialty is investing in movie productions has observed that,in general,movies with "big-name" stars seem to generate more revenue than those movies whose stars are less well known.To examine his belief he records the gross revenue and the payment (in $ millions)given to the two highest-paid stars in the movie for ten recently released movies. $$\begin{array} { | c | c | c | } \hline \text { Movie } & \text { Cost of Twa Highest } & \text { Gross ravanue } \ &\text { Paid Stars }&\ \hline 1 & 5.3 & 4 8 \ 2 & 7.2 & 65 \ 3 & 1.3 & 1 8 \ 4 & 1.8 & 20 \ 5 & 3.5 & 31 \ 6 & 2.6 & 26 \ 7 & 8.0 & 73 \ 8 & 2.4 & 23 \ 9 & 4.5 & 39 \ 10 & 6.7 & 5 8 \ \hline \end{array}$$ Assume that the conditions for the conducting tests of hypotheses for $\rho$ and $\rho$₁ (the two tests are identical)are not met.Do the data allow us to infer at the 5% significance level that payment to the two highest paid stars and gross revenue are linearly related?

A Financier Whose Specialty Is Investing in Movie Productions Has