Introduction

The value of a sports franchise is directly related to the amount of revenue that a franchise can generate.

The data int the table represent the value (in million of dollars) and the annual revenue (in million of dollars)

for 28 baseball franchise.

x

y

Team

Value

Revenue

Anaheim

368

157

Baltimore

359

156

Boston

617

206

Chicago White Sox

315

157

Cleveland

352

150

Detroit

292

146

Kansas City

250

125

Minnesota

216

114

Oakland

234

134

Seattle

410

160

Tampa Bay

209

116

Texas

353

153

Toronto

286

136

Arizona

340

167

Atlanta

405

172

Chicago Cubs

458

179

Cincinnati

274

137

Colorado

298

145

Houston

420

195

Los Angeles

482

189

Milwaukee

235

131

New York Mets

604

195

Philadelphia

424

176

Pittsburgh

260

125

St. Louis

429

175

San Diego

354

168

San Francisco

400

160

Washington

440

145

Perform a simple linear regression analysis as follows

a. Construct a scatter plot

b. Use the least-squares method to find the regression coefficients b0 and b1

Graph the Y predicted on the scatter plot in a)

c. Interprete the meaning of the slope and intercept in this problem.

d. Predict the mean value of a baseball franchise that generates $160 million of annual revenue.

e. Calculate and graph explained, unexplained and total variation.

Label on the graph the three variations. Calculate coefficient of determination.

f. Determine the standard error of the estimate.

Construct the estimate range for the predicted value in d)

g. Perform a residual analysis for this data.

Make conclusion

h. At the 0.05 level of significance, is there evidence of a linear relationship

Perform t test for the slope.

i. Construct a 95% confidence interval estimate of the population slope.

using Data Analysis.