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:

King George's War

A conflict between Great Britain and France in North America from 1744 to 1748, part of the War of the Austrian Succession.

Chesapeake

A region in the United States known for the Chesapeake Bay, an estuary lying inland from the Atlantic Ocean, and surrounding areas, including parts of Maryland and Virginia.

Tobacco Fields

Large agricultural areas dedicated to the cultivation of tobacco plants, which are harvested for their leaves used in making cigarettes and other tobacco products.

Largest Industry

The sector of an economy that constitutes the most significant portion of that economy's output or workforce.