Statistics: Testing Statistical Hypothesis – #390


Question: Movie Data. Consider the following table on total box office receipts and total attendance for all American films, 1990–1997 (Motion Picture Association of America).

TOTAL RECEIPTS TOTAL ATTENDANCE
YEAR (BILLIONS OF DOLLARS) (BILLIONS)
1990 5.0 1.18
1991 4.8 1.14
1992 4.9 1.17
1993 5.2 1.24
1994 5.4 1.29
1995 5.5 1.26
1996 5.9 1.34
1997 6.4 1.39

a. Make a scatter diagram for the data.

b. Briefly characterize the correlation in words and estimate the correlation coefficient.

c. How does the fact that the price of movies has increased since 1990 affect these data? If you were a movie executive, what general conclusions from these data would be important to you?

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