Case 1 – Motion Picture Industry
1. Descriptive statistics for each of the four variables along with a discussion of what the descriptive statistics tells us about the motion picture industry. In the motion picture industry, it is important to measure the opening gross, total gross, number of theaters displaying the movie, and the weeks the movie stayed in the top 60. Opening Gross- this variable informs movie makers how anticipated and well received a movie is and it is a good indication of how much money the movie will earn overall. Total Gross- this variable demonstrates how much money a movie earned overall. A movie that earns a lot of money and produces a good profit for movie makers can guide movie makers as to what types of movies are popular and may earn money in the future. Also, a movie with a high Total Gross may even encourage movie makers to make a sequel to the movie in hopes of maximizing profits. Number of Theaters- this variable is a good indicator of the movie’s popularity. Often theaters will want to show movies that are in demand because it will bring business to the theater. A high demand for a movie can also indicate potentially large profits. Weeks in the Top 60- this variable usually correlates with the popularity of the movie after it has been released. If audiences consistently go to see a movie after it’s released, the longer the movie will stay available for viewing at a movie theater. Usually the longer a movie is available for viewing in a theater, the more money it will earn.
2. What motion pictures, if any, should be considered high-performance outliers? Explain. Harry Potter and the Goblet of Fire should be considered a high-performance outlier because it earned the most amount of money regardless of the number of theaters it was shown in and how many weeks it stayed at the Top 60. Harry Potter’s excessive earnings and its marginal stay at the Top 60 will have a great affect on...
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