Question

Movie Grosses. The data from Exercise 14.36 on domestic and overseas grosses for a random sample of 50 movies are on the WeissStats site. Do the data provide sufficient evidence to conclude that domestic and overseas grosses are positively linearly correlated?

Short answer

The correlation$t$-test procedure is not reasonable to apply for the given data.

Step-by-step solution

Step 1:Given information

The data from Exercise 14.36 on domestic and overseas grosses for a random sample of 50 movies are on the WeissStats site.

Step 2:EXplaination

Check whether reasonably to apply the correlation $t$-test procedure to data by using Exercise 14.36

- From the residual plot, it is clear that the residuals are fall in the funnel shape.

- From the normal probability plot of residuals, it is clear that the residuals are in the slight linear pattern.

Hence, the assumptions ( 1 and 3 ) for the regression inferences are violated for the variables overseas and domestic. That is, the model is not good for the given data. Moreover, the residuals are not normally distributed.

Hence, the correlation $t$-test procedure is not reasonable to apply for the given data.