TABLE 13- 11
a Company That Has the Distribution Rights

question 125

Multiple Choice

TABLE 13- 11
A company that has the distribution rights to home video sales of previously released movies would like to use the box office gross (in millions of dollars) to estimate the number of units (in thousands of units) that it can expect to sell. Following is the output from a simple linear regression along with the residual plot and normal probability plot obtained from a data set of 30 different movie titles:
$$\begin{array}{l}\text { Regression Statistics }\\\begin{array} { l c } \hline \text { Multiple R } & 0.8531 \\\text { RSquare } & 0.7278 \\\text { Adjusted R Square } & 0.7180 \\\text { Standard Error } & 47.8668 \\\text { Observations } & 30\end{array}\end{array}$$
ANOVA
$\begin{array}{lrrrrr}\hline &\text { d f}& \text { SS } & \text { MS } & \text {F }& \text {Significance F} \\\hline \text {Regression }& 1 & 171499.78 & 171499.78 & 74.8505 & 2.1259E-09 \\\text {Residual} & 28 & 64154.42 & 2291.23 & & \\\text {Total} & 29 & 235654.20 & & & \\\hline\end{array}$

$\begin{array}{lrrrrrr}\hline & \text {Coefficients }& \text { Standard Error}& \text { t Stat }& \text { p -value }& \text {Lower 95\% }& \text {Upper 95\% }\\\hline \text { Intercept }& 76.5351 & 11.8318 & 6.4686 & 5.24 \mathrm{E}-07& 52.2987 & 100.7716 \\ \text {Gross} & 4.3331 & 0.5008 & 8.6516 & 2.13 \mathrm{E}-09 & 3.3072 & 5.3590 \\\hline\end{array}$


-Referring to Table 13-11, which of the following is the correct interpretation for the slope coefficient?

• A) For each increase of 1 dollar in box office gross, expected home video units sold are estimated to increase by 4.3331 thousand units.
• B) For each increase of 1 million dollars in box office gross, expected home video units sold are estimated to increase by 4.3331 units.
• C) For each increase of 1 dollar in box office gross, expected home video units sold are estimated to increase by 4.3331 units.
• D) For each increase of 1 million dollars in box office gross, expected home video units sold are estimated to increase by 4.3331 thousand units.

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Definitions:

Earners

Individuals or entities that receive income through work, investment, or other means within an economic system.

Earned Income Tax Credit

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Tax Credit

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Government Cost

The financial expenses incurred by government entities in the execution of public functions and services.