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In: Economics

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

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).

Team

Revenue ($ millions)

Value ($ millions)

Arizona Diamondbacks

195

584

Atlanta Braves

225

629

Baltimore Orioles

206

618

Boston Red Sox

336

1312

Chicago Cubs

274

1000

Chicago White Sox

216

692

Cincinnati Reds

202

546

Cleveland Indians

186

559

Colorado Rockies

199

537

Detroit Tigers

238

643

Houston Astros

196

626

Kansas City Royals

169

457

Los Angeles Angels of Anaheim

239

718

Los Angeles Dodgers

245

1615

Miami Marlins

195

520

Milwaukee Brewers

201

562

Minnesota Twins

214

578

New York Mets

232

811

New York Yankees

471

2300

Oakland Athletics

173

468

Philadelphia Phillies

279

893

Pittsburgh Pirates

178

479

San Diego Padres

189

600

San Francisco Giants

262

786

Seattle Mariners

215

644

St. Louis Cardinals

239

716

Tampa Bay Rays

167

451

Texas Rangers

239

764

Toronto Blue Jays

203

568

Washington Nationals

225

631

1. Write the regression equation.

2. Interpret the regression constant and regression coefficient.

3. Forecast a value for the dependent variable, test the significance of the regression coefficient at an alpha level of .05. Test the overall significance of the regression model, and Interpret the coefficient of determination.

5. Are there any indications of violations of the general linear model? You must address each assumption separately and explain.

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