Reference: Ref 7-3 (Figure: Hollywood Stock Exchange) The data points in the figure represent the opening revenue for movies plotted against their predicted opening revenues according to the Hollywood Stock Exchange (HSX). Most of them fall along the 45-degree line. What does this suggest?
A) The HSX does not do a good job predicting movie revenue.
B) On average, most movies do worse than their HSX predictions.
C) On average, the HSX accurately predicts movie revenues.
D) On average, most movies do better than their HSX predictions.

Question

Reference: Ref 7-3 (Figure: Hollywood Stock Exchange) The data points in the figure represent the opening revenue for movies plotted against their predicted opening revenues according to the Hollywood Stock Exchange (HSX). Most of them fall along the 45-degree line. What does this suggest?
A) The HSX does not do a good job predicting movie revenue. 
B) On average, most movies do worse than their HSX predictions. 
C) On average, the HSX accurately predicts movie revenues. 
D) On average, most movies do better than their HSX predictions.

Quizplus · Accepted Answer

The fact that most data points fall along the 45-degree line suggests that the HSX accurately predicts movie revenues on average.

Reference: Ref 7-3 (Figure: Hollywood Stock Exchange) the Data Points