solution

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. A plot of theatercount versus box office revenue suggests that the relationship may be slightly curved. DATADATA

Â (a) Examine this question by running a regression to predict the box office revenue using the theater count and the

square of the theater count. Report the relevant test statistic with its degrees of freedom and P-value, and summarize your

conclusion.

(b) Now view this analysis in the framework of testing a hypothesis about a collection of regression coefficients, which you studied in Section 11.2 (page 590). The first model includes theater countand the square of theater count, while the second includes onlytheater count. Run both regressions and find the value of R2 foreach. Find the F statistic for comparing the models based on the difference in the values of R2. Carry out the test and report your

conclusion.

(c) Verify that the square of the t statistic that you found in the previous exercise for testing the coefficient of the quadratic term

is equal to the F statistic that you found for this exercise.

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