Theatre Revenues A Financier Whose Specialty Is Investing in Stage Productions Has

question 263

Essay

Theatre Revenues
A financier whose specialty is investing in stage productions has observed that,in general,movies with "big-name" stars seem to generate more revenue than those plays 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 play for ten recently staged plays. ​ ​
-{Theatre Revenues Narrative} Are the two highest paid performers worth all the money paid for them? Comment using the statistical analyses you have done.

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Definitions:

Correspondent Inference

The process by which observers infer the stable dispositions of others from their observed behavior, particularly when the actions are non-common or unexpected.

Representativeness Heuristic

The tendency to overestimate the likelihood that a target is part of a category if the person has features that seem representative of that category.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a person's mind when evaluating a specific topic, concept, method, or decision.

Halo Effect

A cognitive bias where a positive impression in one area influences a person's perception in other areas.