The value of a sports franchise is directly related to the amount of revenue that a franchise can generate. The accompanying data table gives the value and the annual revenue for 15 major sport teams. Suppose you want to develop a simple linear regression model to predict franchise value based on annual revenue generated. Complete parts (a) through (e) below. Annual Revenue(millions of dollars).203, 176, 227, 168, 238, 230, 219,151,162,250,192,222,227,247,195 Franchise _Value_(millions of dollars) 515,326,558,229,585,683,642,211,392,838,450,539,709,735,471 b. Use the least-squares method to determine the regression coefficients b0 and b1. b Subscript 0 enter your response here b Subscript 1 enter your response here (Round to two decimal places as needed.) Part 3 c. Interpret the meaning of and in this problem. Choose the correct answer below. A. The Y-intercept, b0, implies when the annual revenue is zero, the franchise value is b0, in millions dollars. The slope, b1, implies the revenue is equal to b1, in millions of dollars. B. An interpretation of the Y-intercept, b0 , is not meaningful because no sports franchise is going to have a revenue of zero. The slope, b1, implies that for each increase of 1 million dollars in annual revenue, the franchise value is expected to increase by b1, in millions of dollars. C. The Y-intercept, b0, implies that if the annual revenue is zero, the franchise value is equal b0, in millions of dollars. The slope, b1, implies that for each increase of 1 million dollars in annual revenue, the franchise value is expected to decrease by b1, in millions of dollars. D. The Y-intercept, b0, implies that if the annual revenue is zero, the franchise value is equal to the value of , in millions of dollars. The slope, b1, implies that the average franchise value is equal to b1, in millions of dollars. Part 4 d. Predict the mean franchise value (in millions of dollars) of a sports team that generates $ 200 million of annual revenue. Yi bar = $___ million (Round to the nearest integer as needed.) Part 5 e. What would you tell a group considering an investment in a major sports team about the relationship between revenue and the value of a team? A. The value of the franchise is not affected by the changes in revenue. B. The value of the franchise can be expected to decrease as revenue increases. C. The value of the franchise can be expected to increase as revenue increases. D. The value of the franchise can be expected to increase as revenue decreases.

The value of a sports franchise is directly related to the amount of revenue that a franchise can generate. The accompanying data table gives the value and the annual revenue for 15 major sport teams. Suppose you want to develop a simple linear regression model to predict franchise value based on annual revenue generated. Complete parts (a) through (e) below. Annual Revenue(millions of dollars).203, 176, 227, 168, 238, 230, 219,151,162,250,192,222,227,247,195 Franchise _Value_(millions of dollars) 515,326,558,229,585,683,642,211,392,838,450,539,709,735,471 b. Use the least-squares method to determine the regression coefficients b0 and b1. b Subscript 0 enter your response here b Subscript 1 enter your response here (Round to two decimal places as needed.) Part 3 c. Interpret the meaning of and in this problem. Choose the correct answer below. A. The Y-intercept, b0, implies when the annual revenue is zero, the franchise value is b0, in millions dollars. The slope, b1, implies the revenue is equal to b1, in millions of dollars. B. An interpretation of the Y-intercept, b0 , is not meaningful because no sports franchise is going to have a revenue of zero. The slope, b1, implies that for each increase of 1 million dollars in annual revenue, the franchise value is expected to increase by b1, in millions of dollars. C. The Y-intercept, b0, implies that if the annual revenue is zero, the franchise value is equal b0, in millions of dollars. The slope, b1, implies that for each increase of 1 million dollars in annual revenue, the franchise value is expected to decrease by b1, in millions of dollars. D. The Y-intercept, b0, implies that if the annual revenue is zero, the franchise value is equal to the value of , in millions of dollars. The slope, b1, implies that the average franchise value is equal to b1, in millions of dollars. Part 4 d. Predict the mean franchise value (in millions of dollars) of a sports team that generates $ 200 million of annual revenue. Yi bar = $___ million (Round to the nearest integer as needed.) Part 5 e. What would you tell a group considering an investment in a major sports team about the relationship between revenue and the value of a team? A. The value of the franchise is not affected by the changes in revenue. B. The value of the franchise can be expected to decrease as revenue increases. C. The value of the franchise can be expected to increase as revenue increases. D. The value of the franchise can be expected to increase as revenue decreases.

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question

Annual Revenue(millions of dollars).203, 176, 227, 168, 238, 230, 219,151,162,250,192,222,227,247,195

Franchise _Value_(millions of dollars) 515,326,558,229,585,683,642,211,392,838,450,539,709,735,471

b. Use the least-squares method to determine the regression coefficients b0 and b1.

b Subscript 0 enter your response here

b Subscript 1 enter your response here (Round to two decimal places as needed.)

Part 3 c. Interpret the meaning of and in this problem. Choose the correct answer below.

A. The Y-intercept, b0, implies when the annual revenue is zero, the franchise value is b0, in millions dollars. The slope, b1, implies the revenue is equal to b1, in millions of dollars.

B. An interpretation of the Y-intercept, b0 , is not meaningful because no sports franchise is going to have a revenue of zero. The slope, b1, implies that for each increase of 1 million dollars in annual revenue, the franchise value is expected to increase by b1, in millions of dollars.

C. The Y-intercept, b0, implies that if the annual revenue is zero, the franchise value is equal b0, in millions of dollars. The slope, b1, implies that for each increase of 1 million dollars in annual revenue, the franchise value is expected to decrease by b1, in millions of dollars.

D. The Y-intercept, b0, implies that if the annual revenue is zero, the franchise value is equal to the value of , in millions of dollars. The slope, b1, implies that the average franchise value is equal to b1, in millions of dollars.

Part 4 d. Predict the mean franchise value (in millions of dollars) of a sports team that generates $ 200 million of annual revenue.

Yi bar = $___ million (Round to the nearest integer as needed.)

Part 5 e. What would you tell a group considering an investment in a major sports team about the relationship between revenue and the value of a team?

A. The value of the franchise is not affected by the changes in revenue.

B. The value of the franchise can be expected to decrease as revenue increases.

C. The value of the franchise can be expected to increase as revenue increases.

D. The value of the franchise can be expected to increase as revenue decreases.

Definition Definition Measure of central tendency that is the average of a given data set. The mean value is evaluated as the quotient of the sum of all observations by the sample size. The mean, in contrast to a median, is affected by extreme values. Very large or very small values can distract the mean from the center of the data. Arithmetic mean: The most common type of mean is the arithmetic mean. It is evaluated using the formula: μ = 1 N ∑ i = 1 N x i Other types of means are the geometric mean, logarithmic mean, and harmonic mean. Geometric mean: The nth root of the product of n observations from a data set is defined as the geometric mean of the set: G = x 1 x 2 ... x n n Logarithmic mean: The difference of the natural logarithms of the two numbers, divided by the difference between the numbers is the logarithmic mean of the two numbers. The logarithmic mean is used particularly in heat transfer and mass transfer. ln x 2 − ln x 1 x 2 − x 1 Harmonic mean: The inverse of the arithmetic mean of the inverses of all the numbers in a data set is the harmonic mean of the data. 1 1 x 1 + 1 x 2 + ...

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