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ECON 1030 – BUSINESS STATISTICS 1 PROJECT (FRIDAY)   Instructions: This is a project where you can work alone or with two other students (a maximum group size of three)

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ECON 1030 – BUSINESS STATISTICS 1 PROJECT (FRIDAY)

 

Instructions:

This is a project where you can work alone or with two other students (a maximum group size of three). All group members will receive the same marks for the assignment.  All group members must be enrolled in the same tutorial.  The assignment must be provided in the form of a (brief) business report approximately 8-14 pages. You must submit an electronic copy of your assignment in Blackboard.  Hard copies will not be accepted. SHOW YOUR WORK for calculation based questions.

 

This assignment requires the use of Microsoft Excel.  If you have Windows, you will also need to use the Data Analysis ToolPak.  If you have a Mac with Excel 2011, you will need to use StatPlus:MAC LE.

 

Problem Description:

The Motion Picture Distributors Association of Australia has contacted us to explore recent film watching habits in theatres from the United States.  It believes that sequels are increasingly a box office draw and that new intellectual properties are not receiving much attention. A sample of 77 films playing in 2015 through the United States has been collected.  Several characteristics including gross revenue, the number of theatres screened, the metacritic score, whether it is a sequel as well as the genre have been included in the table.

 

You will use descriptive statistics, inferential statistics and your knowledge of multiple linear regression to complete this task.

 

Price (Dependent Variable) and several characteristics (Independent Variables) are given in the Excel file: Friday.xlsx.

 

Here is a table describing the variables in the data set:

Variable	Definition
Gross	Gross Revenue in Millions of US$
Theatres	Number of theatres that screened the film
Metacritic	Metacritic score of the film
Sequel/Reboot	Dummy variable to indicate the film is either a sequel or a reboot of the franchise
Action	Dummy variable to indicate that the film is an action film
Animation	Dummy variable to indicate that the film is an animation
Comedy	Dummy variable to indicate that the film is a comedy film
Drama	Dummy variable to indicate that the film is a drama
Thriller	Dummy variable to indicate that the film is a thriller or horror film

 

 

 

Required:

 

1. Calculate the descriptive statistics from the data and display in a table.  Be sure to comment on the central tendency, variability and shape for Gross Revenue, Theatres, and Metacritic Score. How would you interpret the mean of dummy variables such as Sequel/Reboot or Action? (1 Mark)
2. Draw a graph that displays the distribution of the number of theatres that show a film.  Be sure to comment on the distribution. (1 Mark)
3. Create a box-and-whisker plot for the distribution of the gross revenue and describe the shape.  Is there evidence of outliers in the data? (1 Mark)
4. Film critics often believe that there is little correlation between a rating of a film and the revenue that it brings in.  What is the likelihood that a film that receives a metacritic rating below a 50 still earns more than $90 million? Is the gross revenue statistically independent of the rating?  Use a Contingency Table. (2 Marks)
5. Estimate the 90% confidence interval for the population mean film rating. (1 Mark)