Revenue and advanced sales The production company of

Chapter 8, Problem 8E

(choose chapter or problem)

Problem 8E

Revenue and advanced sales The production company of Exercise 7 offers advanced sales to “Frequent Buyers” through its website. Here’s a relevant scatterplot:

Exercise 7:

Revenue and large venues A regression of Total Revenue on Ticket Sales by the concert production company of Exercises 2 and 4 finds the model

a) Management is considering adding a stadium-style venue that would seat 10,000. What does this model predict that revenue would be if the new venue were to sell out?

b) Why would it be unwise to assume that this model accurately predicts revenue for this situation?

One performer refused to permit advanced sales. What effect has that point had on the regression to model Total Revenue from Advanced Sales?