2 Revenue and talent cost A concert production company exami

2. Revenue and talent cost A concert production company examined its records. The manager made the following scatterplot. The company places concerts in two venues, a smaller. more intimate theater (plotted with blue circles) and a larger auditorium-style venue (red x?s). a) Describe the relationship between Talent Cost and Total Revenue. (Remember: direction, form, strength, outliers.) b) How are the results for the two Venues similar? e) How are they different?

Solution

a)

Looking at the graph, there seems to be a strong, positive, linear relationship between total revenue and talent cost.

b)

They are both positive, linear trends.

c)

There seems to be more outliers when it comes to larger auditoriums, and thus, the linear relationship becomes a bit weaker.

We can also see that the range of revenues for small theaters are small than the range of larger auditoriums.