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 $5 million budget?
Substitute the budget, x = 5, into the regression equation: ŷ = 0.145(5) + 0.136 = 0.725 + 0.136 = 0.861. The predicted score is 0.861 points, choice C.
AI-written and checked against the verified answer.