NARRBEGIN: Comedy Shows Revenues
Comedy Shows Revenues
a Financier Whose

question 180

Essay

NARRBEGIN: Comedy Shows Revenues
Comedy Shows Revenues
A financier whose specialty is investing in comedy shows has observed that, in general, shows with "big-name" stars seem to generate more revenue than those shows 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 comedians in the show for ten recently staged shows. $$\begin{array} { | c | c | c | } \hline \text { Show } & \begin{array} { c } \text { Cost of Two Highest } \\\text { Paid Comedian (\$mil) }\end{array} & \begin{array} { c } \text { Gross Revenue } \\( \mathbf { 4 m i l } )\end{array} \\\hline 1 & 5.3 & 48 \\2 & 7.2 & 65 \\3 & 1.3 & 18 \\4 & 1.8 & 20 \\5 & 3.5 & 31 \\6 & 2.6 & 26 \\7 & 8.0 & 73 \\8 & 2.4 & 23 \\9 & 4.5 & 39 \\10 & 0.7 & 58 \\\hline\end{array}$$ NARREND
-{Comedy Shows Revenues Narrative} Use the regression equation $\hat { y } = 4.225 + 8.285 x$ to determine the predicted values of y.

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