Motion Picture Industry

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Analysis:
Ch.2 #1 - The motion picture industry is a competitive industry. Each year, more than 50 studios produce a total of 300 to 400 new motion pictures. This managerial report is based on data collected for a sample of 100 motion pictures produced in 2005 and will evaluate the financial success of these motion pictures by using 4 major variables – (A) Opening Gross Sales, (B) Total Gross Sales, (C) Number of Theaters, and (D) Weeks in Top 60.

(A) Opening Gross Sales−this variable indicates how anticipated and well received a movie is and how much movie the movie will earn overall.

Opening Gross Sales ($millions)| Upper Limit| Frequency| Relative Frequency| Percent Frequency| 0 - 9| 9.99| 70| 0.70| 70.00%|
10 - 19| 19.99| 15| 0.15| 15.00%|
20 - 29| 29.99| 8| 0.08| 8.00%|
30 - 39| 39.99| 2| 0.02| 2.00%|
40 - 49| 49.99| 1| 0.01| 1.00%|
50 - 59| 59.99| 1| 0.01| 1.00%|
60 - 69| 69.99| 0| 0.00| 0.00%|
70 - 79| 79.99| 1| 0.01| 1.00%|
80 - 89| 89.99| 0| 0.00| 0.00%|
90 - 99| 99.99| 0| 0.00| 0.00%|
100 - 109| 109.99| 2| 0.02| 2.00%|
Total|  | 100| 1.00| 100.00%|

From the table and histogram of A shown above, we notice that 70% of the movies earned less than $10 million of gross sales during the opening weekend. Only 2% earned greater than or equal to $100 million of opening weekend gross sales. (B) Total Gross Sales− this variable demonstrates how much money a movie earned overall.

Total Gross Sales ($millions)| Upper Limit| Frequency| Relative Frequency| Percent Frequency| 0 - 49| 49.99| 77| 0.77| 77.00%|
50 - 99| 99.99| 16| 0.16| 16.00%|
100 - 149| 149.99| 1| 0.01| 1.00%|
150 - 199| 199.99| 1| 0.01| 1.00%|
200 - 249| 249.99| 3| 0.03| 3.00%|
250 - 299| 299.99| 1| 0.01| 1.00%|
300 - 349| 349.99| 0| 0.00| 0.00%|
350 - 399| 399| 1| 0.01| 1.00%|
Total|  | 100| 1.00| 1.00|

As the table...
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