In the last couple of weeks, I have looked at a number of topics around movie budgets.
To complete this trilogy, I am turning to the connection between a movie’s budget and the amount of money it collects at the box office. Specifically, I’ll be looking at the “Domestic” gross, i.e. all the money spent on movie tickets in US and Canadian cinemas.
I’ll be using my dataset of 5,713 feature films released domestically for which I could find a public budget figure. See the Notes section for details and caveats of budget information. To measure the extent to which the budget and box office gross are correlated, I’ll be using the Pearson correlation coefficient.
A coefficient of minus one means they’re perfectly negatively …