The motion picture industry is a competitive business. More than 50 studios produce a total of 300 to 400 new movies each year. The financial success of each motion picture varies considerably. The opening weekend gross sales (in millions), the total gross sales (in millions), the number of theaters in which the movie was shown, and the number of weeks the motion picture was in the top 60 for gross sales are common variables use to measure the success of a movie. Data Collected for a sample of 100 movies produced in 2005 are contained in the file named Movies. xlsx.
This file is attached to the assignment link on Blackboard. Using this data prepare an executive summary detailing how each of the variables help explain the total gross sales. In other words, your total gross sales is a function of opening gross sales, number of theaters, and number of weeks in the top 60. The executive summary will contain the following parts. 1. What are your initial assumptions or hypotheses? Which of the variables have the highest correlation with total gross sales? IE, which variables to you think make the most difference toward total gross sales? By studying the information, I believe the variable with the highest correlation with total gross is the opening gross sales.
The movie with the highest opening gross also ends up with the highest total gross sale. 2. Develop the descriptive statistics for each of the four columns. 3. Develop tabular and graphical summaries for each of the four variables along with a description of what each summary tells us about the motion picture industry, if anything. 4. Develop a scatter diagram to explore the relationship between total gross sales (y) and opening weekend sales (x). Display the regression and slope equations with a trend line. . Develop a scatter diagram to explore the relationship between total gross sales (y) and Number of theaters(x). Display the regression and slope equations with a trend line. 6. Develop a scatter diagram to explore the relationship between total gross sales (y) Number of weeks in the top 60 (x). Display the regression and slope equations with a trend line. 7. Which of these three variables have the most effect on total gross sales? Does this make sense to you? Why or Why not? * The variable that effects the total gross sales the most is the opening sales with R? = 0. 9298.
It does make sense to me because usually If the movie does not start with a high opening gross, meaning people don’t go to premier, it will start falling behind as other movies are following to come out. 8. Does this final analysis square with your initial assumptions or hypothesis? Why or why not? -Yes it does, in my hypothesis I came to the conclusion that opening gross was the main variable and had the most effect as it was shown in the data given, and It made sense to me since I watch a lot of movies, usually if it doesn’t start with a high gross, it will not have a great total gross sales if comparing to other movies. . If you were the marketing executive in charge of spending $100 million to promote the new Iron Man 3 movie coming out this summer, where would you concentrate your money and efforts? Why there? -I would concentrate the money in trailers and commercials as this is how it will show consumers how the movie will be, a sneak peak which everyone loves, and for the ones that don’t have an idea of what the movie is about, it will show them and will most likely encourage them to watch the movie, pretty much it pumps up people and excite them to watch the movie.