Anaïs said farewell to her favorite uncle as he boarded a plane for Paris. That night she dreamed that he was flying in a jetliner that suddenly ran into a powerful….
What is the 95% prediction interval for a baseball franchise that generates $250 million of annual revenue?
Chapter 13 Simple Linear Regression
- The value of a sports franchise is directly related to the amount of revenue that a franchise can generate. The following data represents the value in 2014 (in $millions) and the annual revenue (in $millions) for the 30 Major League Baseball franchises. Suppose you want to develop a simple linear regression model to predict franchise value based on annual revenue generated.
|Chicago White Sox||227||975|
|Los Angeles Angels||304||1300|
|New York Yankees||508||3200|
|Los Angeles Dodgers||403||2400|
|New York Mets||263||1350|
Hint: Copy and paste the data to Excel, on the Data tab, click Data Analysis and select Regression.
- Construct a scatter plot in Excel.
- Write the simple linear regression equation and interpret the meaning of and in this problem.
- Determine the coefficient of determination, , and interpret its meaning.
- At the 0.05 level of significance, is there evidence of a linear relationship between annual revenue and franchise value?
- What is the 95% confidence interval for the mean value of a baseball franchise that generates $250 million of annual revenue?
- What is the 95% prediction interval for a baseball franchise that generates $250 million of annual revenue?