A Financier Whose Specialty Is Investing in Movie Productions Has

question 12

Essay

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 $ million) given to the two highest-paid performers in the movie for 10 recently released movies. $$\begin{array} { | c | c | c | } \hline \text { Movie } & \begin{array} { c } \text { Cost of two highest- } \\\text { paid performers } ( \$ \mathrm {~m} )\end{array} & \begin{array} { c } \text { Gross revenue } \\( \$ \mathrm {~m} )\end{array} \\\hline 1 & 5.3 & 48 \\\hline 2 & 7.2 & 65 \\\hline 3 & 1.3 & 18 \\\hline 4 & 1.8 & 20 \\\hline 5 & 3.5 & 31 \\\hline 6 & 2.6 & 26 \\\hline 7 & 8.0 & 73 \\\hline 8 & 2.4 & 23 \\\hline 9 & 4.5 & 39 \\\hline 10 & 6.7 & 58 \\\hline\end{array}$$ Predict with 95% confidence the gross revenue of a movie whose top two stars earn $5.0 million.

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Definitions:

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Job Satisfaction

The level of contentment employees feel towards their jobs, involving aspects like work environment, duties, and compensation.

Performance

The act of carrying out or accomplishing an action, task, or function.

Ethical Behavior

Acting in ways consistent with what society and individuals typically think are good values, involving honesty, fairness, and equity in interpersonal, professional, and academic settings.