In 2012, the total payroll for the New York Yankees was almost $200 million, while the total payroll for the Oakland Athletics (a team known for using baseball analytics or sabermetrics) was about $55 million, less than one-third of the Yankees' payroll. In the following table, you will see the payrolls (in millions) and the total number of victories for the baseball teams in the American League in the 2012 season. Develop a regression model to predict the to-tal number of victories based on the payroll. Use the model to predict the number of victories for a team with a payroll of $79 million. Based on the results of the computer output, discuss the relationship be-tween payroll and victories.

TEAM

Baltimore Orioles Boston Red Sox

Chicago White Sox Cleveland Indians

Detroit Tigers

Kansas City Royals Los Angeles Angels

Minnesota Twins New York Yankees Oakland Athletics Seattle Mariners

Tampa Bay Rays Texas Rangers

Toronto Blue Jays

PAYROLL ($1,000,000s)

81.4

173.2 96.9 78.4

132.3 60.9

154.5 94.1

198.0 55.4 82.0 64.2

120.5 75.5

NUMBER OF VICTORIES

93 69 85 68 88 72 89 66 95 94 75 90 9