Question: Below are revenue and profit (both in $ billions) for nine large entertainment companies.

1. Make a scatter plot of profit as a function of revenue.
2. Use Excel to fit the regression, with fitted equation
   and R 2.
3. In your own words, describe the fit. (Data are from Fortune 149, no. 7 [April 5,2005], p. F-50.) Entertainment

Revenue and Profit of Nine Entertainment Companies

Company Revenue Profit

AMC Entertainment 1.792 − 0.020

Clear Channel Communication 8.931 1.146

Liberty Media 2.446 − 0.978

Metro-Goldwyn-Mayer 1.883 − 0.162

Regal Entertainment Group 2.490 0.185

Time Warner 43.877 2.639

Univision Communications 1.311 0.155

Viacom 26.585 1.417

Walt Disney 27.061 1.267

Price: $2.99

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