A movie studio wishes to determine the relationship between the revenue from rental of DVDs and videotapes of comedies and the revenue generated from the theatrical release of such movies. The studio has the following bivariate data from a sample of fifteen comedies released over the past five years. These data give the revenue from theatrical release (in millions of dollars) and the revenue from DVD and videotape rentals (in millions of dollars) for each of the fifteen movies. The data are displayed in the Figure 1 scatter plot.
The least-squares regression line for these data has a slope of approximately 0.15.
Answer the following. Carry your intermediate computations to at least four decimal places, and round your answers as specified below. (If necessary, consult a list of formulas.)
1. What is the value of the sample correlation coefficient for these data? (Round your answer to at least 3 decimal places.)
The solution provides a least square regression to look at the correlation coefficients.