Can you use Twitter activity to forecast box office receipts in the opening weekend? The following data (stored in Twitter Movies) indicated the Twitter activity and the receipts per theater on the weekend a movie opened for seven movies
Movie Twitter Activity Receipts($)
The Devil Inside 219,609 14,763
The Dictator 6,405 5,796
Paranormal Activity 3 165,128 15,829
The Hunger Games 579,288 36,871
Bridesmaid 6,564 8,995
Red Tails 11,104 7,477
Act of Valor 9,152 8,054
A) Use the last- square methods to compute the regression coefficients B0 and B1.
B) Interpret the meaning of B0 and B1 in this problem.
C) Predict the man receipts for a movie that has a Twitter activity of 100,000.
D) Should you use the model to predict the receipts fro a movie that has a Twitter activity of 1,000,000? Why or why not?
E) Determine the coefficient of determination, r^2, and explain its meaning in this problem.
F) At the level 0.05 level of significance, is there evidence of a pattern in the residual? Explain.
G) Construct a 95% confidence interval estimate of the mean receipts fro a movie that has a Twitter activity of 100,000 and a 95% prediction interval of the receipts for a single movie that has a Twitter activity of 100,000.
H) Based on the results of (A-H) do you think that Twitter activity is useful predictor of receipts on the first weekend a movie opens? What issues about these data might you hesitant to use Twitter activity to predict receipts?