Case Study 1 Essay

631 Words Jul 30th, 2013 3 Pages
The motion picture industry is a competitive business. More than 50 studios produce a total of 300 to 400 new movies each year. The financial success of each motion picture varies considerably. The opening weekend gross sales (in millions), the total gross sales (in millions), the number of theaters in which the movie was shown, and the number of weeks the motion picture was in the top 60 for gross sales are common variables use to measure the success of a movie. Data Collected for a sample of 100 movies produced in 2005 are contained in the file named Movies.xlsx. This file is attached to the assignment link on Blackboard.
Using this data prepare an executive summary detailing how each of the variables help explain the total gross sales.
Display the regression and slope equations with a trend line.

7. Which of these three variables have the most effect on total gross sales? Does this make sense to you? Why or Why not? * The variable that effects the total gross sales the most is the opening sales with R² = 0.9298. It does make sense to me because usually If the movie does not start with a high opening gross, meaning people don’t go to premier, it will start falling behind as other movies are following to come out.

8. Does this final analysis square with your initial assumptions or hypothesis? Why or why not?
-Yes it does, in my hypothesis I came to the conclusion that opening gross was the main variable and had the most effect as it was shown in the data given, and It made sense to me since I watch a lot of movies, usually if it doesn’t start with a high gross, it will not have a great total gross sales if comparing to other movies.

9. If you were the marketing executive in charge of spending \$100 million to promote the new Iron Man 3 movie coming out this summer, where would you concentrate your money and efforts? Why there?
-I would concentrate the money in trailers and commercials as this is how it will show consumers how the movie will be, a sneak peak which everyone loves, and for the ones that don’t have an idea of what the movie is about, it will show them and will most likely encourage them to watch the movie, pretty much it pumps up people and

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