What is the regression equation yx The best predicted gross

What is the regression equation? (y=____+_____x)

The best predicted gross for a movie with a 105million budget is?

Listed below are paired data consisting of movie budget amounts and the amounts that the movies grossed. Find the regression equation, letting the budget be the predictor (x) variable. Find the best predicted amount that a movie will gross if its budget is $105 million. Use a significance level of a = 0.05.

Solution

Let x be the budget in millions and y be the amounts that grossed.

x is independent and y is dependent.

Scatter plot looks as above:

Hence regression equationis

y = 1.266x + 20.003

-------------------------------------------------------

When budget = 105,

y(105) = 1.266(105) + 20.003

=152.933

X	Y	XY	XX
46	120	5520	2116
18	14	252	324
112	93	10416	12544
71	58	4118	5041
77	114	8778	5929
49	120	5880	2401
122	91	11102	14884
68	97	6596	4624
11	63	693	121
61	104	6344	3721
127	221	28067	16129
22	37	814	484
13	22	286	169
146	299	43654	21316
3	45	135	9
946	1498	132655	89812
Intercept	20.003
slope	1.266