Consider the Following to Answer the Question(s) Below

question 23

Multiple Choice

Consider the following to answer the question(s) below:
Consider the following scatter diagram for 24 of the top grossing movies of all time. The data include the highest grossing films for which world box office receipts and budgets were available. The top two were Avatar and Titanic.
-A new movie is in the making which has a budget of $350 million. Using the equation in the scatter diagram to predict sales we can say

• A) that the prediction is based on autocorrelation.
• B) that the prediction is very close to the actual value as it is based on the strong correlation.
• C) that we should be cautious with a prediction such as this since it is beyond the range of the x-values; the prediction is an extrapolation.
• D) that our prediction is trustworthy
• E) that $350 million falls into the range of the x-values. So, we do not need to worry about extrapolation.