In Problem 13.8 on page 531, you used annual revenues to predict the value of a baseball franchise (stored in BBRevenue). Using the results of that problem,
a. Determine the coefficient of determination, r2, and interpret its meaning.
b. Determine the standard error of the estimate.
c. How useful do you think this regression model is for predicting the value of a baseball franchise?
In problem
The value of a sports franchise is directly related to the amount of revenue that a franchise can generate. The file BBRevenue represents the value in 2010 (in millions of dollars) and the annual revenue (in millions of dollars) for the 30 major league baseball franchises. (Data extracted from www.forbes.com/2010/04/07/most-valuable- baseball-teams-business-sportsmoney-baseballvaluations- 10_values.html.) Suppose you want to develop a simple linear regression model to predict franchise value based on annual revenue generated.