Movies Josh Finkelstein John Hottinger Jenny Yaillen Xiang Huang Edward Han Rory MacDonald Tyronne Martin
Intro • For an economist the study of econometrics, or the statistical analyzing of economic data, is extremely important in understanding economic phenomena. By analyzing sets of past economic data, economists hope to be able to discover trends and tendencies that can be used to predict future economic events with greater accuracy. Cinema has strongly influenced society since its inception, not only socially but economically. It is not uncommon for modern movies to be produced at the cost of tens of million dollars, and to achieve gross profits many times that. With figures as impressive as these it is clear that movies make a discernable impact on the economy. A clearer understanding of what factors influence the gross profit generated by movies is vital to predicting the impact they will have on the economy.
What we are studying? • For this study fifty high popularity movies created within the past sixty years were selected to be analyzed. The aspects of the movies that were studied were the rating, budget, domestic gross, length, viewer score, critic score and profit. These variables were then regressed using statistical analysis to determine important relationships between variables, and their relation to the revenue generated by the movies.
Variables 50 Observations • Rating (R, PG-13, PG, G) • Production Budget • Gross (domestically only) • Length • Viewer Rating (Rotten Tomatoes) • Critic Rating (Rotten Tomatoes) • Profit (Gross-Budget) www.the-numbers.com www.rottentomatoes.com
Why we are studying it? • Study past economic data to predict future events • Better understand factors that influence economic impact of movies • Understanding of past movies allow us to predict gross/budget of future movies
On average, what type of movie (ie R, PG-13, PG) has the highest gross and budget (in millions)???
Does there seem to be a trend in what type of movies are being produced?
Does Critic Rating Effect Gross? Took log
Is there a relationship between the profit of a movie (gross-budget) and the rating received from critics?
Is there relationship between how much a movie makes (profit=gross-budget) and it’s length?
Conclusion • The lower the rating (R, PG-13)=higher gross • Higher critic rating=higher gross/profit • Higher viewer rating=higher gross/profit • Critic rating and viewer rating=correlated • By taking some of the most significant relationships we found we were able to create our final significant and correlated lngross regression