In Problem 13.8 on page 531, you used annual revenues to predict the value of a baseball franchise. Perform a residual analysis for these data (stored in BBRevenue). Based on these results, evaluate whether the assumptions of regression have been seriously violated.
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.