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A Study on Box Office Revenues - Research Paper Example

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This paper "A Study on Box Office Revenues" discusses the principal variables influencing gross box office earnings such as the number of cinema sites, the number of cinema screens, cinema revenue per screen, revenue per admission and the total number of admissions…
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A Study on Box Office Revenues
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Download file to see previous pages From a consideration of the correlation coefficients obtained (Table 1), it was clear that r is greater than 0.8 in all the cases, the correlation was generally strong with all the predictors. However, the variable relating to the number of cinema screens yielding the highest r-value of 0.985 could be considered as the best predictor for the gross box office earnings. On the other hand, the number of cinema sites was not as good a predictor since some cinema sites might house multiple screens (“multiplexes”). Similarly, the gross revenue was more influenced by the cinema revenue per admission (r = 0.972) than the total number of admissions (r = 0.956) because of the value of each ticket (i.e., admission) can differ. However, other important determinants such as the actors/directors/category (comedy, tragedy, action) of the film have not been taken into consideration in this study.

Scatterplots are helpful in visually identifying relationships between any two variables. In the case of gross box office earnings and the number of cinema screens, the regression line on the scatterplot (Fig. 1) being a straight line shows that the two variables have a strong positive linear correlation (r = 0.985). A straight line depicts a linear trend in the data. This means that by increasing the number of cinema screens, the gross box office earnings can be enhanced. Also, since there is a significant linear correlation, the line can be used to estimate the gross box office revenue (dependent variable) for any given value of the number of cinema screens (independent variable). The equation obtained for the regression line from the scatterplot is:

This equation signifies that for every additional screen, the gross revenue will increase by 0.2674 million pounds sterling. This is because the term -179.41 in the equation which is a constant, does not have any practical meaning as such; it is just the point on the graph where the regression line, if extended, will cross the y-axis on which the gross box office earnings are plotted.  ...Download file to see next pagesRead More
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