Question

We analyzed the relationship between the budget (in millions of dollars) and the U.S. Box Office Sales (in millions of dollars) for 74 popular movies. The scatterplot showed a weak positive association with a linear form. Here are the StatCrunch linear regression results:

Simple linear regression results:
Dependent Variable: US_Box_Office
Independent Variable: Budget
US_Box_Office = 245.86629 + 0.60784721 Budget
Sample size: 74
R (correlation coefficient) = 0.40
R-sq = 0.16
Estimate of error standard deviation: 92.47
What is slope of the regression line (rounded to 2 decimal places)?

Answer 1

0.61

Explanation:

From the regression equation given :

US_Box_Office = 245.86629 + 0.60784721 Budget

Comparing the above with the general linear regression equation :

y = bx + c

Where ;

b = slope, Coefficient of independent variable

c = intercept

Hence, for the regression equation given ;

Slope = 0.60784721

Which is the Coefficient of the budget variable.

Slope = 0.61 ( 2 decimal places)