Chapter 4, Problem 1.2VC

Summary Introduction

Introduction:

OM basketball team had set same prices for its 41 game schedule regardless of the opponent of the game. Person AP, who is the director of business strategy, developed a database for ticket sales. He founded that the firm could improve their revenue if they had charged prices based on their fans preferences.

Person AP found a seat could have seven different price variations.

• The day of the week (x₁)
• A rating of how popular the opponent was (x₂).
• The times of the year (x₃) are major statistical factors, which determine the demand for a game.

He found the days, which favored games, and based on the analysis, rating were provided. Ratings on a scale of 0 to 8 were given based on the popularity of the opponents. Finally, Person AP classified that games occurred in four seasons. They were

• Score 0 for early games.
• Score 3 for games during Christmas season.
• Score 2 for games until the All-Star break.
• Score 3 for games leading to play-offs.

To determine: To build regression model with rating of the opponent as only independent variable.