The value of a sports franchise has been said to directly related to the amount of revenue that a franchise can generate. In 2009, a survey was taken with 30 major league baseball franchises. The survey pulled the 30 teams and their associating values and annual revenue (in millions of dollars). The data is presented in the table that follows. Perform a simple linear regression analysis of this data to answer questions. Suggestion: Read all of the questions before doing any analysis. (Team: Value: Revenue ) Anaheim 509 212 Baltimore 400 174 Boston 833 269 Chicago White Sox 450 196 Cleveland 199 181 Detroit 371 186 Kansas City 314 143 Minnesota 356 158 New York Yankees 1500 375 Oakland 319 160 Seattle 426 189 Tampa Bay 320 160 Texas 405 176 Toronto 353 172 Arizona 390 177 Atlanta 446 186 Chicago Cubs 700 239 Cincinnati 342 171 Colorado 373 176 Florida 277 139 Houston 445 194 Los Angeles 722 241 Milwaukee 347 173 New York Mets 912 261 Philadelphia 496 216 Pittsburgh 288 144 St. Louis 486 195 San Diego 401 174 San Francisco 471 196 Washington 406 184 a. Write the simple linear regression equation obtained from this analysis. b. Find the value of the Coefficient of Determination. c. Based on the Coefficient of Determination, would this equation be useful for predicting the value of a baseball franchise? d. Find the value of Syx.
The value of a sports franchise has been said to directly related to the amount of revenue that a franchise can generate. In 2009, a survey was taken with 30 major league baseball franchises. The survey pulled the 30 teams and their associating values and annual revenue (in millions of dollars). The data is presented in the table that follows. Perform a simple linear
(Team: Value: Revenue ) Anaheim 509 212 Baltimore 400 174 Boston 833 269 Chicago White Sox 450 196 Cleveland 199 181 Detroit 371 186 Kansas City 314 143 Minnesota 356 158 New York Yankees 1500 375 Oakland 319 160 Seattle 426 189 Tampa Bay 320 160 Texas 405 176 Toronto 353 172 Arizona 390 177 Atlanta 446 186 Chicago Cubs 700 239 Cincinnati 342 171 Colorado 373 176 Florida 277 139 Houston 445 194 Los Angeles 722 241 Milwaukee 347 173 New York Mets 912 261 Philadelphia 496 216 Pittsburgh 288 144 St. Louis 486 195 San Diego 401 174 San Francisco 471 196 Washington 406 184
a. Write the simple linear regression equation obtained from this analysis.
b. Find the value of the Coefficient of Determination.
c. Based on the Coefficient of Determination, would this equation be useful for predicting the value of a baseball franchise?
d. Find the value of Syx.
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a. Predict the value of a baseball franchise that generates $200 million of annual revenue.
b. Given Syx = 63.075, hi = 0.0339, when X = 200, and with a 95% confidence level. With a 95% confidence level, what are the predicted low and high value of a baseball franchise that generates $200 million of annual revenue?
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