solution

 

Refer to the data set on movie revenue in Case 11.2 (page 591). The variables Budget, Opening, andUSRevenue all have distributions with long tails. For this problem, let’s consider building a model using the logarithm transformation of these variables. DATADATA

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(a) Run the multiple regression to predict the logarithm of USRevenue using the logarithm of Budget, the logarithm of Opening,

and Theaters and obtain the residuals. There is one outlyingmovie. Which is it?

(b) Remove this movie and refit the model in part (a). State the regression model and note which coefficients are statistically significant at the 5% level.

(c) Examine the residuals graphically. Does the distribution appear approximately Normal? Explain your answer.

(d) In Exercise 11.37 (page 597), you were asked to predict the revenue of a particular movie. Using the results from this

model, construct a 95% prediction interval for the movie’s log USRevenue.