Problem 10 15 Exercises page 61 Hollywood is spending more

Problem # 10 1.5 Exercises page 61

Hollywood is spending more and more to produce its big summer movies each year. the estimated costs of summer big budget releases (in billions of dollors) for the years 2011 through 2013 are given in the following tables.

Year 2011 2012 2013

Spending y 2.1 2.4 2.7

(a)Letting x=1 denotes 2011, find and equation of the least-squareline for theses data.

(b) Use the result of part (a) to estimate the amount of money Hollywood will spend in 2015 to produce its big summer movies for that year, assuming the trend continues.

Solution

a)

Using technology, we get              
              
slope =    0.3          
intercept =    1.8          
              
Thus, the regression line is              
              
y^ =    0.3x + 1.8 [answer]
              

b)

Thus, if x =    5,

y^ = 0.3*5 + 1.8          
              
Then              
              
y^ =    3.3   [ANSWER]