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Can you use Twitter activity to forecast box office receipts on the opening weekend? The data are stored in TwitterMovies.
A) Use the least-squares method to compute the regression coefficients b0 and b1.
B) Interpret the meaning of b0 and b1 in this problem.
C) Predict the receipts for a movie that has a Twitter activity of 100,000.
D) Should you use the model to predict the receipts for a movie that has a Twitter activity of 1,000,000? Why or Why not?
E) Determine the coefficient of determination, r2, and explain its meaning in this problem.
F) Perform a residual analysis. Is there any evidence of a linear relationship between Twitter
activity and receipts?
G) At the 0.05 level of significance, is there any evidence of a linear relationship between Twitter activity and receipts?
H) Construct a 95% confidence interval estimate of the mean receipts for a move 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.
I) Based on the results of (a) through (h), do you think that Twitter activity is a useful predictor of receipts on the first weekend a movie opens? What issues about these data might make you
hesitant to use Twitter activity to predict receipts?
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