Fully investigate the hypothesis that dvd revenues are

Question

From the excel data attached, the company has always estimated DVD revenue differently, based on whether the box office revenue was in excess of $100 million, or not. In fact the company usually estimates that DVD revenue will be higher by $25 million when the box office revenue is in excess of $100 million.

1. Fully investigate the hypothesis that DVD revenues are larger on average when the box office revenue is in excess of $100 million. State all required assumptions, indicate your chosen level of significance (and why you chose it) and give a plain-English business context conclusion.
2. Test the dealership's hypothesis that $25 million should be added to the estimated DVD revenue, when the box office revenue is in excess of $100 million. Does the data support that hypothesis?

Attachment:- Movie.xlsx

Answer 1

From the excel data illustrated, the company has for all time estimated DVD revenue in a different way, based on whether the box office revenue was in surplus of $100 million, or not. However, the company generally estimates that DVD revenue will be more by $25 million if the box office revenue is in surplus of $100 million. 1) Completely investigate the hypothesis that DVD revenues are more on average if the box office revenue is in surplus of $100 million. State all requisite suppositions, point out your selected level of importance (and why you select it) and provide a plain-English business context conclusion. 2) Test the dealership's assumption that $25 million must be added to the estimated DVD revenue, if the box office revenue is in surplus of $100 million. Does data support the hypothesis?