Baseball salaries. In 2007, the Boston Red Sox won the World Series and spent $143 million on salaries for their players (benfry.com/salaryper). Is there a relationship between salary and team performance in Major League Baseball? For the 2007 season, a linear model fit to the number of Wins (out of 162 regular season games) from the team Salary ($M) for the 30 teams in the league is:

a) What is the explanatory variable?

b) What is the response variable?

c) What does the slope mean in this context?

d) What does the y-intercept mean in this context? Is it meaningful?

e) If one team spends $10 million more than another on salaries, how many more games on average would you predict them to win?

f) If a team spent $110 million on salaries and won half (81)
of their games, would they have done better or worse than predicted?
g) What would the residual of the team in part f be?

Transcribed Image Text:

Wins 70.097 +0.132 Salary.