Inflation at the Movies

Inflation at the Movies Steven Spielberg is probably the most famous living director in the world and one of the most accomplished of all time. His movies have domestic box office earnings of over $3 billion and global earnings over $6 billion. What Spielberg films were the most successful? Which ones were the least successful? Listed below are the movies Spielberg has directed and their domestic box office revenues in current-year dollars, along with the CPI for the year the film was released. Consider the real revenues generated by the films and identify the five most successful films and the five least successful. See below for the formula and examples. Mark the five movies with the highest box office performance with an H in the last column, and mark the five with the lowest performance with an L. **Total Revenue for Spielberg Movies** | Movie Title | Revenue (in millions) | Year Released | CPI (1983=100) | Base Year Revenue | |----------------------------------------------------------------------------------|-----------------------|---------------|----------------|-------------------| | Close Encounters of the Third Kind | $260 | 1977 | 61.0 | 481.5 | | Raiders of the Lost Ark | $324 | 1981 | 91.6 | 353.6 | | E.T. The Extra-Terrestrial | $400 | 1982 | 97.6 | 409.8 | | The Color Purple | $140 | 1985 | 107.6 | 130.2 | | Empire of the Sun | $22 | 1987 | 113.6 | 19.4 | | Indiana Jones and the Last Crusade | $191 | 1989 | 124.0 | 154.0 | | Always | $44 | 1990 | 130.7 | 33.7 | | Hook | $102 | 1991 | 136.2 | 74.9 | | Jurassic Park | $357 | 1993 | 144.4 | 247.4 | | Schindler's List | $185 | 1993 | 144.4 | 127.8 | | The Lost World | $229 | 1997 | 160.5 | 142.7 | | Amistad | $44 | 1998 | 163.2 | 27.0 | | Saving Private Ryan | $216 | 1998 | 163.2 | 132.4 | | A.I. Artificial Intelligence | $78 | 2001 | 177.1 | 44.1 | | Minority Report | $132 | 2002 | 179.9 | 73.4 | | Catch Me If You Can | $164 | 2003 | 184.0 | 89.1 | | The Terminal | $77 | 2004 | 188.9 | 40.8 | | War of the Worlds | $234 | 2005 | 195.3 | 119.8 | | Munich Inflation rate = CPI (base year) - CPI year A CPI year A Real revenue = (Revenue year A x inflation rate) + Revenue year A Example: Jaws Inflation rate = 100 - 54 / 54 = 0.85185 Real revenue = (260m x 0.85185) + 260m = 481.5m Directions: Calculate real revenue for each movie and put the answers in the column (far right). Then list Steven Spielberg's 5 most successful films and 5 least successful films according to their real revenues. Most successful 1. 2. 3. 4. 5. Least successful 1. 2. 3. 4. 5.