A Financier Whose Specialty Is Investing in Movie Productions Has

question 8

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. $$\begin{array} { | c | c | c | } \hline \text { Movie } & \begin{array} { c } \text { Cost of two highest- } \\\text { paid performers } ( \$ \mathrm {~m} )\end{array} & \begin{array} { c } \text { Gross revenue } \\( \$ \mathrm {~m} )\end{array} \\\hline 1 & 5.3 & 48 \\\hline 2 & 7.2 & 65 \\\hline 3 & 1.3 & 18 \\\hline 4 & 1.8 & 20 \\\hline 5 & 3.5 & 31 \\\hline 6 & 2.6 & 26 \\\hline 7 & 8.0 & 73 \\\hline 8 & 2.4 & 23 \\\hline 9 & 4.5 & 39 \\\hline 10 & 6.7 & 58 \\\hline\end{array}$$ Conduct a test of the population coefficient of correlation to determine at the 5% significance level whether a linear relationship exists between payment to the two highest-paid performers and gross revenue.

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Definitions:

Glycogen

A large, branched polymer of glucose that serves as a form of energy storage in animals and fungi.

Excess Post-exercise Oxygen Consumption

The increased rate of oxygen intake following strenuous activity.

Oxygen Consumption

The process by which living organisms utilize oxygen to metabolize organic compounds and produce energy.

Exercise

Physical activity that is planned, structured, and repetitive for the purpose of conditioning any part of the body.