The value of a sports franchise is directly related to the amount of revenue that a franchise can generate. The following data represents the value in 2014 (in $millions) and the annual revenue (in $millions) for the 30 Major League Baseball franchises. Suppose you want to develop a simple linear regression model to predict franchise value based on annual revenue generated. Team Revenue Value Baltimore 245 1000 Boston 370 2100 Chicago White Sox 227 975 Cleveland 207 825 Detroit 254 1125 Houston 175 800 Kansas City 231 700 Los Angeles Angels 304 1300 Minnesota 223 895 New York Yankees 508 3200 Oakland 202 725 Seattle 250 1100 Tampa Bay 188 625 Texas 266 1220 Toronto 226 870 Arizona 211 840 Atlanta 267 1150 Chicago Cubs 302 1800 Cincinnati 227 885 Colorado 214 855 Los Angeles Dodgers 403 2400 Miami 188 650 Milwaukee 226 875 New York Mets 263 1350 Philadelphia 265 1250 Pittsburgh 229 900 St. Louis 294 1400 San Diego 225 890 San Francisco 387 2000 Washington 287 1280 Hint: Copy and paste the data to Excel, on the Data tab, click Data Analysis and select Regression. Construct a scatter plot in Excel. Write the simple linear regression equation and interpret the meaning of b0b0 and b1b1 in this problem. Determine the coefficient of determination, r2r2 , and interpret its meaning. At the 0.05 level of significance, is there evidence of a linear relationship between annual revenue and franchise value? What is the 95% confidence interval for the mean value of a baseball franchise that generates $250 million of annual revenue? What is the 95% prediction interval for a baseball franchise that generates $250 million of annual revenue?

The value of a sports franchise is directly related to the amount of revenue that a franchise can generate. The following data represents the value in 2014 (in $millions) and the annual revenue (in $millions) for the 30 Major League Baseball franchises. Suppose you want to develop a simple linear regression model to predict franchise value based on annual revenue generated. Team Revenue Value Baltimore 245 1000 Boston 370 2100 Chicago White Sox 227 975 Cleveland 207 825 Detroit 254 1125 Houston 175 800 Kansas City 231 700 Los Angeles Angels 304 1300 Minnesota 223 895 New York Yankees 508 3200 Oakland 202 725 Seattle 250 1100 Tampa Bay 188 625 Texas 266 1220 Toronto 226 870 Arizona 211 840 Atlanta 267 1150 Chicago Cubs 302 1800 Cincinnati 227 885 Colorado 214 855 Los Angeles Dodgers 403 2400 Miami 188 650 Milwaukee 226 875 New York Mets 263 1350 Philadelphia 265 1250 Pittsburgh 229 900 St. Louis 294 1400 San Diego 225 890 San Francisco 387 2000 Washington 287 1280 Hint: Copy and paste the data to Excel, on the Data tab, click Data Analysis and select Regression. Construct a scatter plot in Excel. Write the simple linear regression equation and interpret the meaning of b0b0 and b1b1 in this problem. Determine the coefficient of determination, r2r2 , and interpret its meaning. At the 0.05 level of significance, is there evidence of a linear relationship between annual revenue and franchise value? What is the 95% confidence interval for the mean value of a baseball franchise that generates $250 million of annual revenue? What is the 95% prediction interval for a baseball franchise that generates $250 million of annual revenue?

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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The value of a sports franchise is directly related to the amount of revenue that a franchise can generate. The following data represents the value in 2014 (in $millions) and the annual revenue (in $millions) for the 30 Major League Baseball franchises. Suppose you want to develop a simple linear regression model to predict franchise value based on annual revenue generated.

Team	Revenue	Value
Baltimore	245	1000
Boston	370	2100
Chicago White Sox	227	975
Cleveland	207	825
Detroit	254	1125
Houston	175	800
Kansas City	231	700
Los Angeles Angels	304	1300
Minnesota	223	895
New York Yankees	508	3200
Oakland	202	725
Seattle	250	1100
Tampa Bay	188	625
Texas	266	1220
Toronto	226	870
Arizona	211	840
Atlanta	267	1150
Chicago Cubs	302	1800
Cincinnati	227	885
Colorado	214	855
Los Angeles Dodgers	403	2400
Miami	188	650
Milwaukee	226	875
New York Mets	263	1350
Philadelphia	265	1250
Pittsburgh	229	900
St. Louis	294	1400
San Diego	225	890
San Francisco	387	2000
Washington	287	1280