A Financier Whose Specialty Is Investing in Movie Productions Has

Essay

A financier whose specialty is investing in movie productions has observed that,in general,movies with "big-name" stars seem to generate more revenue than those movies whose stars are less well known.To examine his belief he records the gross revenue and the payment (in $ millions)given to the two highest-paid stars in the movie for ten recently released movies. Assume that the conditions for the conducting tests of hypotheses for ρ and β₁ (the two tests are identical)are not met.Do the data allow us to infer at the 5% significance level that payment to the two highest paid stars and gross revenue are linearly related?