What are the multiple correlations of three sets of predictors and overall state of health? The first set of predictors contains demographic variables (age and years of education). The second….
What is the 95% prediction interval for a baseball franchise that generates $250 million of annual revenue?
Chapter 13 Simple Linear Regression
- 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.
|Chicago White Sox||227||975|
|Los Angeles Angels||304||1300|
|New York Yankees||508||3200|
|Los Angeles Dodgers||403||2400|
|New York Mets||263||1350|
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 and in this problem.
- Determine the coefficient of determination, , 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?