Movie Revenues 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 performers in the movie for ten recently released movies. {Movie Revenues Narrative} Which interval in the previous two questions is narrower: the confidence interval estimate of the expected value of y or the prediction interval for the same given value of x (10 years)and same confidence level? Why?

Question

Movie Revenues 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 performers in the movie for ten recently released movies.  {Movie Revenues Narrative} Which interval in the previous two questions is narrower: the confidence interval estimate of the expected value of y or the prediction interval for the same given value of x (10 years)and same confidence level? Why?

Quizplus · Accepted Answer

The Answer of Movie Revenues 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 performers in the movie for ten recently released movies.  {Movie Revenues Narrative} Which interval in the previous two questions is narrower: the confidence interval estimate of the expected value of y or the prediction interval for the same given value of x (10 years)and same confidence level? Why?

Movie Revenues a Financier Whose Specialty Is Investing in Movie