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Brad Henry Has Just Purchased the Film Studio of a Movie

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Essay

Brad Henry has just purchased the film studio of a movie company that specializes in action adventures.He found that the company did not try to estimate the cost of making a movie.Instead it just gave the producer a budget and told him/her to make a movie within budget.Mr.Henry does not like the former movie-budget concept and desires to establish a formal cost estimation system.Required:
What are some of the potential problems that may be encountered in changing from a budget to a cost estimation movie-making system?


Definitions:

Statistics

The science of collecting, analyzing, interpreting, and presenting data to make informed decisions.

Summary Measures

Quantitative data that provide a statistical overview of a set of observations or measurements.

MIN(range)

Refers to the smallest value in a given range of data.

Smallest Value

The minimum value within a set of numbers or measurements.

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