Player costs (X) and operating expenses (Y) for n = 26 major league baseball teams for the 1990-1991 season are given in Table P-15. (All data are in millions of dollars.)

a. Assuming a simple linear regression model, determine the equation for the fitted straight line.

b. Determine and comment on the strength of the linear relation.

c. Test for the significance of the regression with a level of significance of .10.

d. Can we conclude that, as a general rule. operating expenses are about twice player costs? Discuss.

c. Forecast operating expenses, with a large-sample 95% prediction interval. if player costs are $30.5 million.

f. Using the residuals as a guide, identify any unusual observations. That is, do some teams have unusually low or unusually high player costs as a component of operating expenses?