8.

A company that has the distribution rights to home video sales of previously released
movies would like to be able to estimate the number of units that it can be expected to
sell. Data are available for 30 movies that indicate the box office gross (in millions of
dollars) and the number of units sold (in thousands) of home videos. The results are as
follows:
BOX OFFICE BOX OFFICE
GROSS ($ HOME VIDEO GROSS ($ HOME VIDEO
MOVIE MILLIONS) UNITS SOLD MOVIE MILLIONS) UNITS SOLD
1 1.10 57.18 16 9.36 190.80
2 1.13 26.17 17 9.89 121.57
3 1.18 92.79 18 12.66 183.30
4 1.25 61.60 19 15.35 204.72
5 1.44 46.50 20 17.55 112.47
6 1.53 85.06 21 17.91 162.95
7 1.53 103.52 22 18.25 109.20
8 1.69 30.88 23 23.13 280.79
9 1.74 49.29 24 27.62 229.51
10 1.77 24.14 25 37.09 277.68
11 2.42 115.31 26 40.73 226.73
12 5.34 87.04 27 45.55 365.14
13 5.70 128.45 28 46.62 218.64
14 6.43 126.64 29 54.70 286.31
15 8.59 107.28 30 58.51 254.58
(a) Set up a scatter diagram.
(b) Use the least-squares method to find the regression coefficients ̂ 0 and ˆ1 .
(c) State the regression equation.
(d) Interpret the meaning of ̂ 0 and ̂ 1 in this problem.
(e) Predict the average video unit sales for a movie that had a box office gross of $20
million.
(f) What other factors in addition to box office gross might be useful in predicting video
unit sales?

B01.1305 5 Prof. Juran