Unit 354 Written Assignment
ECMT1020 Written Assignment
(Note: All numbers will be round up to 3 decimal places)
a) The estimated of the elasticity of demand is -2.040, indicating that the demand for movie ticket is inelastic. Since the p-value (0.000) is less than, we can conclude that at 5% significance level, the price (which is the estimation of elasticity of demand) coefficient is not zero and that the elasticity of demand will lies between -2.689 and -1.391.
b) The value of is 0.354 meaning that the regression model accounts 35.4% of the variation of the dependent variable, leaving 64.6% unexplained variation. Compared to the in part a), it has increases by 32.1% suggesting that additional of other independent variables have influences on the attendance …show more content…
This suggests that greater investment in production gives better quality of movies thus more people are willing to watch movie.
Week (): A greater number of week-of-releases of film at cinema on date of observation will causes 0.292 units decrease in number of people watching movie as more people prefer to watch the film as soon as it is released.
Sequel (): If the film is either sequel or prequel, there will be an increase of 0.997 units of increase in the number of …show more content…
Saturday significant test
The p-value for Saturday is zero, which is less than Therefore we reject null hypothesis and conclude that the Saturday coefficient is significant and will retain in the regression. The coefficient’s sign is positive, meaning that it supports the intuition of increased attendance on the weekends.
Also, Saturday appears to have the greatest effect on admissions as the coefficient is greatest at 0.465 compare to Friday 0.293 and Sunday 0.352.
Sunday significant test
The p-value for Sunday is zero, which is less than . Therefore we reject null hypothesis and conclude that the Sunday coefficient is significant and will retain in the regression. The coefficient’s sign is positive, meaning that it supports the intuition of increased attendance on the weekends.
d) Opening Day Hypothesis Test
According to the regression table, the p-value for Opening day is 0.012 which is greater than . Therefore, we do not reject the null hypothesis and conclude that the Opening Day coefficient is equal to zero, thus it is insignificant and will not be included in the regression.
Public Holiday Hypothesis
(Note: All numbers will be round up to 3 decimal places)
a) The estimated of the elasticity of demand is -2.040, indicating that the demand for movie ticket is inelastic. Since the p-value (0.000) is less than, we can conclude that at 5% significance level, the price (which is the estimation of elasticity of demand) coefficient is not zero and that the elasticity of demand will lies between -2.689 and -1.391.
b) The value of is 0.354 meaning that the regression model accounts 35.4% of the variation of the dependent variable, leaving 64.6% unexplained variation. Compared to the in part a), it has increases by 32.1% suggesting that additional of other independent variables have influences on the attendance …show more content…
This suggests that greater investment in production gives better quality of movies thus more people are willing to watch movie.
Week (): A greater number of week-of-releases of film at cinema on date of observation will causes 0.292 units decrease in number of people watching movie as more people prefer to watch the film as soon as it is released.
Sequel (): If the film is either sequel or prequel, there will be an increase of 0.997 units of increase in the number of …show more content…
Saturday significant test
The p-value for Saturday is zero, which is less than Therefore we reject null hypothesis and conclude that the Saturday coefficient is significant and will retain in the regression. The coefficient’s sign is positive, meaning that it supports the intuition of increased attendance on the weekends.
Also, Saturday appears to have the greatest effect on admissions as the coefficient is greatest at 0.465 compare to Friday 0.293 and Sunday 0.352.
Sunday significant test
The p-value for Sunday is zero, which is less than . Therefore we reject null hypothesis and conclude that the Sunday coefficient is significant and will retain in the regression. The coefficient’s sign is positive, meaning that it supports the intuition of increased attendance on the weekends.
d) Opening Day Hypothesis Test
According to the regression table, the p-value for Opening day is 0.012 which is greater than . Therefore, we do not reject the null hypothesis and conclude that the Opening Day coefficient is equal to zero, thus it is insignificant and will not be included in the regression.
Public Holiday Hypothesis