The document summarizes a linear regression analysis conducted by Dat Stats Tho, LLC to model the relationship between production budgets and worldwide box office gross for top movies. It outlines the steps taken, including designing the study, collecting data on numerous movies, describing and visualizing the data, making inferences, and recommendations based on the linear model. Key findings include that a $275 million budget should gross around $916 million, and a $281.7 million budget is needed to predict a $1 billion worldwide gross with 95% confidence.

1. SONY REGRESSION ANALYSIS
BY ADAM MANWARING, NELSON MOAK, GARRETT GRAHAM, BETHANY
PULIDO, AND HAMAIDU FADIKA OF DAT STATS THO. LLC

2. DESIGN THE STUDY
• Linear Regression model
Fill the 5 requirements:
-Linear Relationship
-Normal Error Term
-Constant Variance
-X’s are known constants (Assumed)
-Observations are Independent (Assumed)

3. COLLECT DATA
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$0
$500,000,000
$1,000,000,000
$1,500,000,000
$2,000,000,000
$2,500,000,000
$0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 $300,000,000 $350,000,000
WorldwideGross
Production Budget
Budget and Gross Correlation of Top Box Office Movies

4. DESCRIBE THE DATA

5. SCATTER PLOT OF RESIDUALS

6. QQ PLOT OF RESIDUALS
QQ Plot of Residuals
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0 0.2 0.4 0.6 0.8 1 1.2 1.4
QQPlot

8. MAKE INFERENCE
• According to the data, we can be 95% confident that the first
movie that they have already spent $275,000,000 on should
gross about $916,466,146.33.
• If you want your next movie to gross $1,000,000,000, you
should plan to invest $281,769,512.54. You can be 95% certain
that if you invest that amount, you will gross $1Billion.

9. ACTION TO BE TAKEN
• According to the data, we can be 95% confident that the first
movie that they have already spent $275,000,000 on should
gross between $812,450,669 and $1,003,768,632.34.
• If you want your next movie to gross $1,000,000,000, you
should plan to invest $300,000,000 (at least $281,769,512.54).
This expense checked in the linear equation is estimated to
produce a gross of $1,005,192,394.

10. DAT STATS THO, LLC.
• Dat Stats Tho LLC is a business group with leading market
analysts Luke “Harrison Ford” Harris, Nelson “the Moak” Moak,
Garrett “The Action” Graham, Bethany “Lil Mama” Pulido,
Haimidu “Farquad” Fadika, and Adam “Big Tasty” Manwaring
• 1358 3rd West, Rexburg ID 83440
• Due to high phone call volume, email us at
getstattedup@yummystats.org
• Thank YOU!