Suppose you estimate the following regression of a Movie's ticket sales and the season of year (Summer =1 if in May, June, July, August, =0 otherwise) that movie's initial release was in: Sales = 295,342 + 40.24 Summer. You are willing to believe you have a random sample of store locations, and a sufficiently large sample size. Which statements are well justified by the regression results? A) Movies released in the summer tend to have higher ticket sales. B) Moving the scheduled release of a movie from the winter to the summer will increase its sales by 40.24. C) Moving the Jurassic World release date to Christmas instead of 4^th of July weekend, would have resulted in ticket sales of 295,342. D) Promotional activities increase the number of movie tickets sold holding other factors fixed.

Question

Quizplus · Accepted Answer

The regression coefficient for Summer is positive and significant, suggesting that movies released in the summer tend to have higher ticket sales.

B is not justified because the regression coefficient represents the increase in ticket sales for a movie released in the summer compared to a movie released in the winter, holding all other factors constant. It does not necessarily mean that moving a specific movie's release date will result in a 40.24 increase in sales.

C is not justified because the regression equation only pertains to the sample of movies in the dataset, and it cannot be generalized to a specific movie like Jurassic World without additional information.

D is not justified because the regression equation only includes season of release as a predictor variable, and does not include any measures of promotional activities. Therefore, it cannot be concluded whether promotional activities have any effect on ticket sales based on this regression alone.

Suppose You Estimate the Following Regression of a Movie's Ticket