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The accounting numbers for major league baseball franchises are given in the table below. All figures are in millions of dollars. The numerical variables are GtReceit (Gate Receipts), MediaRev (Media Revenue), StadRev (Stadium Revenue), PlayerCt (Player Costs), OpExpens (Operating Expenses), and FranValu (Franchise Value).

Use Minitab to answer the following questions:

a. Fit a multiple regression model relating Franchise Value to all other variables. Is the regression significant? Explain.

b. What is the average increase/decrease in the Franchise value when the Stadium revenue increases by $1 million?

c. Compute a forecast of the Franchise Value if the independent variables have the following values: Gate receipts = $10 million, Media revenue = $25 million, Stadium revenue = $9 million, Player costs = $22 million, and Operating expenses = $35 million.

d. What is the value of the standard error of the estimate (S). Interpret its meaning in terms of this problem.

e. What is the value of the coefficient of determination (R²). Interpret its meaning in terms of this problem.

f. What are the values of the variance inflation factors (VIFs) for the independent variables. Is multicollinearity a problem for these data? Why?

g. Examine the t statistics for checking the significance of the individual predictor variables. Which predictor variable(s) can be eliminated?

h. How can this regression equation be improved? (Hint: Apply the "All possible regressions" method in Minitab to answer this part).

i. Apply the "stepwise method" in Minitab and compare the results with your answer in part (h).

Table 1: Accounting Numbers for Major League Baseball ($ millions) Franchise GtReceit MediaRev StadRev PlayerCt OpExpens Fran Valu Ny Yank 19.4 7.4 29.8 59.6 200 LADodge 26.6 32.5 19 36 72 180 NYMets 22.9 50 16 35.2 70.4 170 TorBlJay 44.5 30 12 28.7 62.4 160 BosRdSox 23.5 40.5 14.3 35.4 70.8 160 BaltOrio 18 24.4 5 15.8 39.5 140 Ch WhSox 27.5 24.7 19.3 18 60 140 StLCard 19.9 25 12 23.2 45.4 132 ChCubs 22.8 27.5 12 57 132 TxRanger 19 26.5 14 20.7 47.6 123 KCRoyals 16.9 20.5 14.5 30.4 60.8 117 PhilPhil 15.2 23.2 7.6 20.7 43.4 115 OakAthlt 25.7 28 10 39.2 56.6 115 CalAngls 18 27.9 5 34.3 61.7 103 SFGiants 15.5 26.2 5 33.3 52.3 CinnReds 17.1 24.4 5.3 27.1 47.8 98 SDPadres 14.6 23.1 7.5 24.4 48.8 96 HousAstr 10.6 26.2 8 12.1 31.5 95 PittPirt 16.2 20.9 5.5 24.9 49.8 87 DetTiger 15.6 28.8 5 32.1 54.4 85 AtBraves 15.4 18.9 3.8 20.4 41.8 83 Minn Twin 17.2 20.5 3.2 24.1 48.2 83 SeatMar 15.5 21 5 17.4 41.8 79 MilBrews 14.2 19.4 3 25.4 50.2 77 ClevIndn 9.5 23.7 6.6 19.5 47.8 77 MonExpos 10.7 22.5 3 21.8 43.6 75