Sample Final Answers.pdf - Sample Final Exam Answers Mgmt...

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Mgmt 402 Sample
Final Exam Answers
Question 1 (19 points)
A large movie studio is examining box office ticket sales for animated films, to help identify
potential investment opportunities. They have obtained a dataset consisting of 376 animated
films created since 1990, each with the following variables:
• OPENING_GROSS gross revenue during the opening weekend (in $).
• OPENING_THEATERS number of theaters film is shown during opening weekend.
• DECADE_2000 dummy variable that equals 1 if film opened from 2000-2009,
0 otherwise.
• DECADE_2010 dummy variable that equals 1 if film opened after 2010,
0 otherwise.
• PIXAR dummy variable that equals 1 if film was created by Pixar Studios.
• SEQUEL dummy variable that equals 1 if film is a sequel, 0 otherwise.
A regression model was run with the following output:
Dependent Variable: OPENING_GROSS
Independent Variables: DECADE_2000, DECADE_2010, OPENING_THEATERS, PIXAR, SEQUEL
Descriptive Statistics
Variable Count Mean Median Std.Dev Minimum Maximum
OPENING_GROSS 376 16,004,947 4,148,515 23,949,867 478 135,060,273
DECADE_2000 376 0.378 0 0.485 0 1
DECADE_2010 376 0.455 0 0.499 0 1
OPENING_THEATERS 376 1,817 2,057 1,639 1 4,529
PIXAR 376 0.048 0 0.214 0 1
SEQUEL 376 0.128 0 0.334 0 1
Correlation Matrix
OPENING_GROSS DECADE_2000 DECADE_2010 OPENING_THEATERS PIXAR SEQUEL
OPENING_GROSS 1.000
DECADE_2000 0.025 1.000
DECADE_2010 0.122 -0.711 1.000
OPENING_THEATERS 0.756 0.093 0.034 1.000
PIXAR 0.431 0.005 -0.005 0.217 1.000
SEQUEL 0.340 -0.068 0.147 0.270 0.138 1.000
Regression Statistics
R Square Adj.RSqr Std.Err.Reg. # Cases # Missing t(2.5%,370)
0.669 0.664 13,874,034 376 0 1.966
Summary Table
Variable Coeff Std.Err.
Intercept -7,859,311 1,829,996
DECADE_2000 3,018,356 2,131,339
DECADE_2010 6,169,890 2,079,471
OPENING_THEATERS 9,601 469
PIXAR 30,567,951 3,449,060
SEQUEL 7,925,231 2,258,453

Question 1 (continued)
(a) What is the average gross revenue during opening weekend for animated films?
(2 points)
(b) What is the estimate of the standard deviation of the error terms for this regression?
(c) What is the 95% confidence interval for the change in expected gross revenue during
opening weekend associated with 100 additional theaters showing the film?
(4 points)
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