A Financier Whose Specialty Is Investing in Movie Productions Has

question 165

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. $$\begin{array} { | c | c | c | } \hline \text { Movie } & \begin{array} { c } \text { Cost of two highest- } \\\text { paid performers } ( \$ \mathrm {~m} )\end{array} & \begin{array} { c } \text { Gross revenue } \\( \$ \mathrm {~m} )\end{array} \\\hline 1 & 5.3 & 48 \\\hline 2 & 7.2 & 65 \\\hline 3 & 1.3 & 18 \\\hline 4 & 1.8 & 20 \\\hline 5 & 3.5 & 31 \\\hline 6 & 2.6 & 26 \\\hline 7 & 8.0 & 73 \\\hline 8 & 2.4 & 23 \\\hline 9 & 4.5 & 39 \\\hline 10 & 6.7 & 58 \\\hline\end{array}$$ Draw a scatter diagram of the data to determine whether a linear model appears to be appropriate.

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Definitions:

Inattentional Blindnesses

A psychological phenomenon where an individual fails to perceive an unexpected stimulus in plain sight when their attention is focused on another task or aspect of their environment.

Evolutionary Psychology

A contemporary evolutionary perspective used in the social and natural sciences to scrutinize psychological structures.

Neurology

The branch of medicine concerned with the study and treatment of disorders of the nervous system.

Behaviorism

A theory of learning based on the idea that all behaviors are acquired through conditioning and interactions with the environment, emphasizing observable behaviors over internal phenomena like thoughts and feelings.