In Problem 12.8 on page 424, you used annual revenues to predict the value of a baseball franchise. Perform a residual analysis for these data (stored in BBValues ). Based on these results, evaluate whether the assumptions of regression have been seriously violated.
In problem 12.8
The value of a sports franchise is directly related to the amount of revenue that a franchise can generate. The file BBValues represents the value in 2014 (in $ millions) and the annual revenue (in $ millions) for the 30 Major League Baseball franchises. (Data extracted from www. forbes. com/ mlb valuations/ list.) Suppose you want to develop a simple linear regression model to predict franchise value based on annual revenue generated.