Sunday, January 1, 2017

Roger's statement isn't exactly correct, as it doesn't make sense that a movie would make 3.8735 million dollars without any money put into the production of the movie. A movie cannot even be produced with money budgeted.
Looking at the definition of a linear equation of the regression line, y = a + bx or sometimes written as y = b0 +b1(x). The y-intercept is b0, which is the value when x is 0.
In this case by definition x being the budget and y being the revenue, yes with 0 dollars for budget, the revenue is 3.8735.
But we have to look at practicality with our conclusion. Like I mentioned above, this makes no sense in the context of the problem. So, we cannot make this conclusion. The y-intercept in this case is something we shouldn't even consider because you will never have a budget of 0 dollars.

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