Question

Is there a relationship between total team salary and team performance in a sport such as professional basketball? To answer this question we will examine the number of wins and total team payroll in a recent season for all the teams in the National Basketball Association (NBA). The data are in this Excel file.

Question 1. Let the x-variable be the team payroll and let the y-variable be the team wins. Find the intercept b₀ and slope b₁ of the least squares prediction line Wins^ = b₀ + b₁*Payroll.
______ intercept (use 2 decimal places in your answer)
______ slope (use 3 decimal places in your answer)

Question 2. If an NBA team spent an additional $8.2 million in team salary, how many more games could the team expect to win? (Use 1 decimal place in your answer).
_______

Question 3. Suppose a basketball team spent $112 million on salaries and won 46 games.
Part a. Based on their payroll would they have done better or worse than predicted? (only 1 submission allowed).
Worse than predicted or better than predicted?

Part b. What is the residual for this basketball team? (use 2 decimal places in your answer)
________

Question 4. All teams have a goal to make the postseason playoffs. A basketball team thinks that it can make the playoffs next year if it wins 7 more games. How much should the basketball team increase its payroll if it wants to make the playoffs next year?

Note: Use 2 decimal places. Your answer should be in units of $1 million; do NOT include a dollar sign in the answer; for example, if a team should increase its payroll by $5,250,000, then the answer is 5.25.
$ ________ increase in team payroll (in $million) needed for basketball team to win 7 more games

DATA:

Payroll	Wins
137.363	50
105.355	35
115.084	55
98.285	25
107.889	46
119.109	49
119.070	65
116.154	47
85.904	24
119.800	48
107.613	48
100.414	24
94.818	21
131.223	44
89.425	27
100.794	52
100.086	39
94.430	48
117.228	36
120.805	44
96.040	28
116.575	59
107.855	29
137.495	58
117.469	47
110.273	22
134.294	48
124.180	43
118.907	42
95.628	27

Answer 1