From the excel data attached, the company has always estimated DVD revenue differently

| August 30, 2017

Question
From the excel data attached, the company has always estimated DVD revenue differently, based on whether the box office revenue was in excess of $100 million, or not. In fact the company usually estimates that DVD revenue will be higher by $25 million when the box office revenue is in excess of $100 million.

Fully investigate the hypothesis that DVD revenues are larger on average when the box office revenue is in excess of $100 million. State all required assumptions, indicate your chosen level of significance (and why you chose it) and give a plain-English business context conclusion.
Test the dealership’s hypothesis that $25 million should be added to the estimated DVD revenue, when the box office revenue is in excess of $100 million. Does the data support that hypothesis?

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