A Financier Whose Specialty Is Investing in Movie Productions Has

question 88

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 slope 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:

Lifetime Prevalence

The proportion of individuals in a population that at some point in their life (up to the time of assessment) have experienced a particular event or condition.

Cognitive-behavioral Therapy

A method in psychotherapy aimed at correcting maladaptive emotions, behaviors, and beliefs through a structured, objective-focused procedure.

Feared Behaviors

Actions or reactions that are avoided due to associated anxiety, fear, or phobia.

Social Skills

The abilities necessary for effective interpersonal interactions and communication, including listening, empathy, and conflict resolution.