SACAD: John Heinrichs Scholarly and Creative Activity Days


Numerous sources in the field have discussed the positive correlation between movie budgets and the box office income of movies. This research paper aims to examine further the effects budget has on the income success of movies. To achieve this objective, we have extracted data on the most popular movies globally from the International Movie Database (IMDb). The data utilizes information between the years 2019 to 2022. The dependent variable, INCOME, is controlling for various independent variables, which are BUDGET (in millions of dollars), RATING (on a scale of 1-10), and RUNTIME (in minutes). Furthermore, our categorical variables are MONTH and YEAR.

The study obtains the results using the Ordinary Least Squares Methodology (OLS.) We found a few potential challenges that violate the OLS assumptions. However, they are solved by transforming our model. With this, we can say that our model could have an unbiased, efficient, and consistent estimator.

The findings indicate a potential positive relationship between budget and income. Even when adding the independent variables, the relationship becomes stronger; suggesting that budget is not necessarily the most critical factor in predicting the revenue success of movies.

Faculty Advisor

Samuel Schreyer


Economics, Finance, & Accounting

Submission Type

in-person poster




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