Do movies with a higher production budget result in a higher worldwide gross revenue
• Do movies with a higher production budget result in a higher worldwide gross revenue?
• Do NFL athletes with higher QB performance have higher salaries?
• Do states with a higher college degree rate have a lower poverty rate?
• Do Coca-Cola beverages with higher sugar content have more calories?
There is a strong correlation between the production budget of a movie and its worldwide gross revenue. This means that, on average, movies with higher budgets tend to make more money at the box office. However, there are many other factors that can also affect a movie’s success, such as the quality of the film, the marketing campaign, and the release date.
A study by Stephen Follows found that there is a Pearson correlation of 0.744 between budget and domestic gross for movies released in the past twenty years. This means that there is a strong positive relationship between the two variables. In other words, for every $1 increase in budget, there is an expected increase of $0.74 in domestic gross.