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A Financier Whose Specialty Is Investing in Movie Productions Has

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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.  Movie  Cost of two highest-  paid performers ($ m) Gross revenue ($ m)15.34827.26531.31841.82053.53162.62678.07382.42394.539106.758\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:

Transactional Leadership

A leadership style that focuses on the exchanges that occur between leaders and their followers, where leaders reward or discipline followers based on performance.

Personal Abilities

The skills, talents, and competencies that an individual possesses, which can contribute to their performance in various tasks or roles.

Profound Effects

Significant and deep impacts that alter or influence something substantially.

Lowest-Risk Followers

Individuals or entities that tend to engage with or support the least risky strategies, options, or leaders.

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