Motion Picture Industry
Analysis:
Ch.2 #1 - The motion picture industry is a competitive industry. Each year, more than 50 studios produce a total of 300 to 400 new motion pictures. This managerial report is based on data collected for a sample of 100 motion pictures produced in 2005 and will evaluate the financial success of these motion pictures by using 4 major variables – (A) Opening Gross Sales, (B) Total Gross Sales, (C) Number of Theaters, and (D) Weeks in Top 60.
(A) Opening Gross Sales−this variable indicates how anticipated and well received a movie is and how much movie the movie will earn overall.
Opening Gross Sales ($millions) | Upper Limit | Frequency | Relative Frequency | Percent Frequency | 0 - 9 | 9.99 | 70 | 0.70 | 70.00% | 10 - 19 | 19.99 | 15 | 0.15 | 15.00% | 20 - 29 | 29.99 | 8 | 0.08 | 8.00% | 30 - 39 | 39.99 | 2 | 0.02 | 2.00% | 40 - 49 | 49.99 | 1 | 0.01 | 1.00% | 50 - 59 | 59.99 | 1 | 0.01 | 1.00% | 60 - 69 | 69.99 | 0 | 0.00 | 0.00% | 70 - 79 | 79.99 | 1 | 0.01 | 1.00% | 80 - 89 | 89.99 | 0 | 0.00 | 0.00% | 90 - 99 | 99.99 | 0 | 0.00 | 0.00% | 100 - 109 | 109.99 | 2 | 0.02 | 2.00% | Total | | 100 | 1.00 | 100.00% |
From the table and histogram of A shown above, we notice that 70% of the movies earned less than $10 million of gross sales during the opening weekend. Only 2% earned greater than or equal to $100 million of opening weekend gross sales.
(B) Total Gross Sales− this variable demonstrates how much money a movie earned overall.
Total Gross Sales ($millions) | Upper Limit | Frequency | Relative Frequency | Percent Frequency | 0 - 49 | 49.99 | 77 | 0.77 | 77.00% | 50 - 99 | 99.99 | 16 | 0.16 | 16.00% | 100 - 149 | 149.99 | 1 | 0.01 | 1.00% | 150 - 199 | 199.99 | 1 | 0.01 | 1.00% | 200 - 249 | 249.99 | 3 | 0.03 | 3.00% | 250 - 299 | 299.99 | 1 | 0.01 | 1.00% | 300 - 349 | 349.99 | 0 | 0.00 | 0.00% | 350 - 399 | 399 | 1 | 0.01 | 1.00% | Total | | 100 | 1.00 | 1.00 |
As the table
Ch.2 #1 - The motion picture industry is a competitive industry. Each year, more than 50 studios produce a total of 300 to 400 new motion pictures. This managerial report is based on data collected for a sample of 100 motion pictures produced in 2005 and will evaluate the financial success of these motion pictures by using 4 major variables – (A) Opening Gross Sales, (B) Total Gross Sales, (C) Number of Theaters, and (D) Weeks in Top 60.
(A) Opening Gross Sales−this variable indicates how anticipated and well received a movie is and how much movie the movie will earn overall.
Opening Gross Sales ($millions) | Upper Limit | Frequency | Relative Frequency | Percent Frequency | 0 - 9 | 9.99 | 70 | 0.70 | 70.00% | 10 - 19 | 19.99 | 15 | 0.15 | 15.00% | 20 - 29 | 29.99 | 8 | 0.08 | 8.00% | 30 - 39 | 39.99 | 2 | 0.02 | 2.00% | 40 - 49 | 49.99 | 1 | 0.01 | 1.00% | 50 - 59 | 59.99 | 1 | 0.01 | 1.00% | 60 - 69 | 69.99 | 0 | 0.00 | 0.00% | 70 - 79 | 79.99 | 1 | 0.01 | 1.00% | 80 - 89 | 89.99 | 0 | 0.00 | 0.00% | 90 - 99 | 99.99 | 0 | 0.00 | 0.00% | 100 - 109 | 109.99 | 2 | 0.02 | 2.00% | Total | | 100 | 1.00 | 100.00% |
From the table and histogram of A shown above, we notice that 70% of the movies earned less than $10 million of gross sales during the opening weekend. Only 2% earned greater than or equal to $100 million of opening weekend gross sales.
(B) Total Gross Sales− this variable demonstrates how much money a movie earned overall.
Total Gross Sales ($millions) | Upper Limit | Frequency | Relative Frequency | Percent Frequency | 0 - 49 | 49.99 | 77 | 0.77 | 77.00% | 50 - 99 | 99.99 | 16 | 0.16 | 16.00% | 100 - 149 | 149.99 | 1 | 0.01 | 1.00% | 150 - 199 | 199.99 | 1 | 0.01 | 1.00% | 200 - 249 | 249.99 | 3 | 0.03 | 3.00% | 250 - 299 | 299.99 | 1 | 0.01 | 1.00% | 300 - 349 | 349.99 | 0 | 0.00 | 0.00% | 350 - 399 | 399 | 1 | 0.01 | 1.00% | Total | | 100 | 1.00 | 1.00 |
As the table