Solution Found!
Forecasting movie revenues with Twitter. Marketers are
Chapter 11, Problem 23E(choose chapter or problem)
Forecasting movie revenues with Twitter. Marketers are keenly interested in how social media (e.g., Facebook, Twitter) may influence consumers who buy their products. Researchers at HP Labs (Palo Alto, CA) investigated whether the volume of chatter on Twitter.com could be used to forecast the box office revenues of movies (IEEE International Conference on Web Intelligence and
\(\begin{array}{cc}
\hline \text { Tweet Rate } & \text { Revenue (millions) } \\
\hline 1365.8 & 142 \\
1212.8 & 77 \\
581.5 & 61 \\
310.1 & 32 \\
455 & 31 \\
290 & 30 \\
250 & 21 \\
680.5 & 18 \\
150 & 18 \\
164.5 & 17 \\
113.9 & 16 \\
144.5 & 15 \\
418 & 14 \\
98 & 14 \\
100.8 & 12 \\
115.4 & 11 \\
74.4 & 10 \\
87.5 & 9 \\
127.6 & 9 \\
52.2 & 9 \\
144.1 & 8 \\
41.3 & 2 \\
2.75 & 0.3 \\
\hline
\end{array}\)
Intelligent Agent Technology, 2010). Opening weekend box office revenue data (in smillions of dollars) were collected for a sample of 23 recent movies. In addition, the researchers computed each movie’s tweet rate, i.e., the average number of tweets (at Twitter.com) referring to the movie per hour 1 week prior to the movie’s release. The data (simulated based on information provided in the study) are listed in the accompanying table. Assuming that movie revenue and tweet rate are linearly related, how much do you estimate a movie’s opening weekend revenue to change as the tweet rate for the movie increases by an average of 100 tweets per hour?
Questions & Answers
QUESTION:
Forecasting movie revenues with Twitter. Marketers are keenly interested in how social media (e.g., Facebook, Twitter) may influence consumers who buy their products. Researchers at HP Labs (Palo Alto, CA) investigated whether the volume of chatter on Twitter.com could be used to forecast the box office revenues of movies (IEEE International Conference on Web Intelligence and
\(\begin{array}{cc}
\hline \text { Tweet Rate } & \text { Revenue (millions) } \\
\hline 1365.8 & 142 \\
1212.8 & 77 \\
581.5 & 61 \\
310.1 & 32 \\
455 & 31 \\
290 & 30 \\
250 & 21 \\
680.5 & 18 \\
150 & 18 \\
164.5 & 17 \\
113.9 & 16 \\
144.5 & 15 \\
418 & 14 \\
98 & 14 \\
100.8 & 12 \\
115.4 & 11 \\
74.4 & 10 \\
87.5 & 9 \\
127.6 & 9 \\
52.2 & 9 \\
144.1 & 8 \\
41.3 & 2 \\
2.75 & 0.3 \\
\hline
\end{array}\)
Intelligent Agent Technology, 2010). Opening weekend box office revenue data (in smillions of dollars) were collected for a sample of 23 recent movies. In addition, the researchers computed each movie’s tweet rate, i.e., the average number of tweets (at Twitter.com) referring to the movie per hour 1 week prior to the movie’s release. The data (simulated based on information provided in the study) are listed in the accompanying table. Assuming that movie revenue and tweet rate are linearly related, how much do you estimate a movie’s opening weekend revenue to change as the tweet rate for the movie increases by an average of 100 tweets per hour?
ANSWER:Step 1 of 11
The fitted regression equation is given below:
\(y=\beta_{0}+\beta_{1} x+\varepsilon\)
Where, y = response variable (Revenue)
x = explanatory variable (Tweet rate)
\(\beta_{0}\) = y intercept
\(\beta_{1}\) = slope of the line
\(\varepsilon\) = random error component