2. Introduction
y American Broadcasting Network(ABN) and Bellmore
Broadcasting Service(BBS) and Colonial Broadcasting
Company(CBC) are major networks.
y According Neilson Rating, 1 unit rating represented 921,000
viewers
y Two kinds ofTV movie
y Fact based
y Fiction based
3. Solution(1/6)
y Question 1a)
y Regression 1 output is
Rating=13.346-0.6483BBS+1.397ABN
y Thus, Rank according to average rating is
RATINGABN > RATINGCBC> RATINGBBS
y Question 1b)
y ABN produces a rating of 14.743
y CBC produces an average rating of 13.346.
y The difference in rating between the two is 1.397
4. Solution (2/6)
y Question 2a & 2b)
y From regression 2 output,
Rating=13.25+1.401Fact
y Therefore, the average rating for a fact based movie is 14.651
and for a fictional movie is 13.25
y Question 3)
y From regression 2 output
Rating=13.25+1.401Fact
y The ratings for fact based movie & fictional movie on an average
differs by 1.401 with an r-square value of 0.0742.
y The p-value is 0.0109 and thus difference is statistically
significant
5. Solution (3/6)
y Question 4)
y From table we conclude that a fact based movie has fewer stars
than fiction based movies on an average.
Type of movie Average
Rating
Type of movie Average
Rating
Fictional(including
stars & non stars)
13.25 Fact based(including
stars & non stars)
14.651
Fictional without
stars
12.57 Fact based without
stars
14.369
Fictional with stars 13.829 Fact based with stars 15.628
6. Solution (4/6)
y Question 5)
y From regression 5, 1 unit increase in previous program rating
increases the rating of the movie by 0.1862
y Therefore, 2.5 increase in previous program rating increases the
movie rating by = 2.5*0.1862 = 0.4655
y Question 6a & 6b)
y From regression 5, 1 unit increase in the average rating of the
competitors reduce the rating for CBC network by 0.2899
y Thus, 2 unit increase will reduce the rating for CBC by 0.5798
7. Solution (5/6)
y Question 6b)
y From case , 1 unit of rating represent 921,000 viewers
y From regression 5, 1 unit increase in the average rating of the
competitors reduce the rating for CBC network by 0.2899
y Therefore, for 1 unit increase in rating for ABN and BBS, their
audience increase by 921,000 each and CBC audience decrease
by 266,998
y Thus overall number of viewers increase
8. Solution (6/6)
y Question 7a)
y The regression does not provide enough data to
y Question 7b)
y For a fictional movie the average rating with star=13.829 and without
star=12.57. So the difference in expected ratings would be 1.259.
y Question 8)
y Yes, Fact based movie has higher rating then fiction base movie
y This can be concluded as all the coefficient ofVariable FACT is
positive
