4-30 In 2012, the total payroll for the New York Yankees was almost $200 million, while the total payroll for the Oakland Athletics (a team known for using base- ball analytics or sabermetrics) was about $55 million, less than one-third of the Yankees payroll. In the fol- lowing table, you will see the payrolls (in millions) and the total number of victories for the baseball teams in the American League in the 2012 season. Develop a regression model to predict the total num- ber of victories based on the payroll. Use the model to predict the number of victories for a team with a pay- roll of $79 million. Based on the results of the com- puter output, discuss the relationship between payroll and victories.
4-30 In 2012, the total payroll for the New York Yankees was almost $200 million, while the total payroll for the Oakland Athletics (a team known for using base- ball analytics or sabermetrics) was about $55 million, less than one-third of the Yankees payroll. In the fol- lowing table, you will see the payrolls (in millions) and the total number of victories for the baseball teams in the American League in the 2012 season. Develop a regression model to predict the total num- ber of victories based on the payroll. Use the model to predict the number of victories for a team with a pay- roll of $79 million. Based on the results of the com- puter output, discuss the relationship between payroll and victories.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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
Transcribed Image Text:4-30 In 2012, the total payroll for the New York Yankees
was almost $200 million, while the total payroll for
the Oakland Athletics (a team known for using base-
ball analytics or sabermetrics) was about $55 million,
less than one-third of the Yankees payroll. In the fol-
lowing table, you will see the payrolls (in millions)
and the total number of victories for the baseball
teams in the American League in the 2012 season.
Develop a regression model to predict the total num-
ber of victories based on the payroll. Use the model to
predict the number of victories for a team with a pay-
roll of $79 million. Based on the results of the com-
puter output, discuss the relationship between payroll
and victories.
TEAM
Baltimore Orioles
Boston Red Sox
Chicago White Sox
Cleveland Indians
Detroit Tigers
Kansas City Royals
Los Angeles Angels
Minnesota Twins
New York Yankees
Oakland Athletics
Seattle Mariners
Tampa Bay Rays
Texas Rangers
Toronto Blue Jays
PAYROLL
($MILLIONS)
81.4
173.2
96.9
78.4
132.3
60.9
154.5
94.1
198.0
55.4
82.0
64.2
120.5
75.5
NUMBER OF
VICTORIES
93
69
85
68
88
72
89
66
95
94
75
90
93
73
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