To estimate the budget of a U.S. movie from our dataset and compare it to the average budget now, we can calculate the mean and use a confidence interval to make a decision.
Once we have the dataset, we add up all the budgets and divide by the number of movies to find the average budget.
For example, if we have a dataset with 10 movies and their respective budgets are $80 million, $100 million, $120 million, $150 million, $90 million, $110 million, $130 million, $140 million, $160 million, and $170 million, we add all the budgets (80 + 100 + 120 + 150 + 90 + 110 + 130 + 140 + 160 + 170 = 1250) and divide by 10 to get an average budget of $125 million.
To compare the average budget now with the dataset, we can use a confidence interval (CI).
A CI is a range of values that we are confident the true average budget falls within.
We can calculate the CI using a statistical formula, considering the sample mean, sample size, and standard deviation.
If the CI for the dataset's average budget includes $139 million, we can say the average budget now is about the same.
If the CI is higher, the average budget now is higher. If the CI is lower, the average budget now is lower.