The following data show the annual revenue ($ millions) and the estimated team value ($ millions) for

Question:

The following data show the annual revenue ($ millions) and the estimated team value ($ millions) for the 30 Major League Baseball teams (Forbes website, January 16, 2014).

Value ($ millions) Team Revenue ($ millions) Arizona Diamondbacks Atlanta Braves Baltimore Orioles Boston Red Sox Chicag

Chicago White Sox Cincinnati Reds 216 692 202 186 546 Cleveland Indians Colorado Rockies 559 199 537 Detroit Tigers 643

a. Develop a scatter diagram with Revenue on the horizontal axis and Value on the vertical axis. Looking at the scatter diagram, does it appear that there are any outliers and/or influential observations in the data?
b. Develop the estimated regression equation that can be used to predict team value given the annual revenue.
c. Use residual analysis to determine whether any outliers and/or influential observations are present. Briefly summarize your findings and conclusions.