A Financier Whose Specialty Is Investing in Movie Productions Has

question 176

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. $$\begin{array} { | c | c | c | } \hline \text { Movie } & \begin{array} { c } \text { Cost of two highest- } \\\text { paid performers } ( \$ \mathrm {~m} )\end{array} & \begin{array} { c } \text { Gross revenue } \\( \$ \mathrm {~m} )\end{array} \\\hline 1 & 5.3 & 48 \\\hline 2 & 7.2 & 65 \\\hline 3 & 1.3 & 18 \\\hline 4 & 1.8 & 20 \\\hline 5 & 3.5 & 31 \\\hline 6 & 2.6 & 26 \\\hline 7 & 8.0 & 73 \\\hline 8 & 2.4 & 23 \\\hline 9 & 4.5 & 39 \\\hline 10 & 6.7 & 58 \\\hline\end{array}$$ Assume that the conditions for the tests conducted in the previous two questions are not met. Do the data allow us to infer at the 5% significance level that payment to the two highest-paid performers and gross revenue are linearly related?

---

Definitions:

Suburban Campus Settings

Educational environments located in the suburban areas that often feature expansive layouts and are situated outside of major urban centers.

Competitive Atmospheres

Environments where individuals or groups compete against each other to achieve success, recognition, or rewards, often leading to high levels of pressure and stress.

Achieve

To successfully reach a desired or intended goal through effort, skill, or courage.

Suicide Prevention Centers

Organizations or facilities dedicated to providing support, education, and intervention strategies to reduce the incidence of suicide and assist those at risk.