The value of a sports franchise is directly related to the amount of revenue that a franchise can generate. Below is the data that represents the value (in $millions) and the annual revenue (in $millions) for 30 Major League Baseball franchises. Suppose you want to develop a simple linear regression model to predict franchise value based on annual revenue generated. Team Revenue Value Baltimore 179 460 Boston 310 1000 Chicago White Sox 214 600 Cleveland 178 410 Detroit 217 478 Kansas City 161 354 Los Angeles Angels 226 656 Minnesota 213 510 New York Yankees 439 1850 Oakland 160 321 Seattle 210 585 Tampa Bay 161 323 Texas 233 674 Toronto 188 413 Arizona 186 447 Atlanta 203 508 Chicago Cubs 266 879 Cincinnati 185 424 Colorado 193 464 Houston 196 549 Los Angeles 230 1400 Miami 148 450 Milwaukee 195 448 New York Mets 225 719 Philadelphia 249 723 Pittsburgh 168 336 St. Louis 233 591 San Diego 163 458 San Francisco 230 643 Washington 200 480 (a) determine the coefficient of determination, r2, and interpret its meaning. (b) determine the standard error of estimate (Syx).
The value of a sports franchise is directly related to the amount of revenue that a franchise can generate. Below is the data that represents the value (in $millions) and the annual revenue (in $millions) for 30 Major League Baseball franchises. Suppose you want to develop a simple linear regression model to predict franchise value based on annual revenue generated.
|
Team |
Revenue |
Value |
|
Baltimore |
179 |
460 |
|
Boston |
310 |
1000 |
|
Chicago White Sox |
214 |
600 |
|
Cleveland |
178 |
410 |
|
Detroit |
217 |
478 |
|
Kansas City |
161 |
354 |
|
Los Angeles Angels |
226 |
656 |
|
Minnesota |
213 |
510 |
|
New York Yankees |
439 |
1850 |
|
Oakland |
160 |
321 |
|
Seattle |
210 |
585 |
|
Tampa Bay |
161 |
323 |
|
Texas |
233 |
674 |
|
Toronto |
188 |
413 |
|
Arizona |
186 |
447 |
|
Atlanta |
203 |
508 |
|
Chicago Cubs |
266 |
879 |
|
Cincinnati |
185 |
424 |
|
Colorado |
193 |
464 |
|
Houston |
196 |
549 |
|
Los Angeles |
230 |
1400 |
|
Miami |
148 |
450 |
|
Milwaukee |
195 |
448 |
|
New York Mets |
225 |
719 |
|
Philadelphia |
249 |
723 |
|
Pittsburgh |
168 |
336 |
|
St. Louis |
233 |
591 |
|
San Diego |
163 |
458 |
|
San Francisco |
230 |
643 |
|
Washington |
200 |
480 |
(a) determine the coefficient of determination, r2, and interpret its meaning.
(b) determine the standard error of estimate (Syx).
(c) How useful do you think this regression model is for predicting the value of a baseball franchise?
Step by step
Solved in 2 steps
