A movie production company was interested in the relationship between the budget to make a movie and how well that movie was received by the public. Information was collected on several movies and was used to obtain the regression equation ŷ = 0.145x + 0.136, where x represents the budget of a movie (in millions of dollars) and ŷ is the predicted score of that movie (in points from 0 to 1). What is the predicted score of a movie that has a $250,000 budget?
The budget is $250,000, or 0.25 million dollars, so use x = 0.25 in the regression equation. The predicted score is ŷ = 0.145(0.25) + 0.136 = 0.03625 + 0.136 = 0.17225 points. Therefore, the predicted score is 0.17225 points.
AI-written and checked against the verified answer.