Investing in Major Films

MA 331 Project Show Down

Created By: The Fantastic Three!

Mengting GuoYuxiao Ning

Haig Shishmanian

Who wants to invest in films?

We will focus on profitability, assuming that more profitable films are better to invest in.

Following our careful analysis, we have come up with 3 plans.

Premium plan: If you are not the main investor or you don’t have too much money, the combination of PG and Drama will be idea for you.

Luxury plan: If you are the main investor of the movie or you want to invest a lot of money, the combination of PG and Adventure will be your best choice.

Special offer: If available, it is very beneficial to invest in the rare G-rated movies.

Quick Definition of the Genre and MPAA-Rating.

Action Comedy

Adventure Drama

MPAA RatingsG - General Audiences All ages admitted

PG - Parental Guidance SuggestedSome material may not be suitable for children

R - RestrictedUnder 17 requires accompanying parent or adult guardian

PG-13 - Parents Strongly Cautioned Some material may be inappropriate for children under 13

What our data looks like

What determines profitability?

We want to focus on variable that are tangible and valid to audiences

Example: What is the distributor? Location of filming? Source? MPAA rating? Genre?

Which of these, if any, have a significant correlation with profitability?

Why did we choose these two variables.

Now our group decided to focus on the effect of MPAA-rating and Genre on the profit!

The idea behind the Models (Why are there two different plans?)

Note: Source are very important as well. But there is problem with the source and it will be mentioned in the discussion part.

First we gathered information of many movies and analyzed which pair of Genre-Mpaa-rating will give us the most amount of profit.

We performed a linear regression model, interaction model and an anova table to carefully analyze our data.

The result shows that the duo that has the best return is the combination of Adventure as Parents Guardian as MPAA-rating.

Then we will try to analyze which pair will give us the most profit-percentage.

Again, we performed a linear regression model, interaction model and an anova table.

The result shows that the combination will be Drama and PG

G rated moviesOnly popular in a specific genreLeast likely to be released in theatresMost likely to be made for a family with

kids.

1. Should we include source?

2. Is there better way of explaining why we should invest in G movies?

3. Any questions?

Data source: http://www.the-numbers.com