The value of a sports franchise is directly related to the amount of revenue that a franchise can generate. The data attached represents the value in 2009 (in millions of dollars) and the annual revenue (in millions of dollars) and the annual revenue (in millions of dollars) for the 30 major league baseball franchises. Suppose you want to develop a simple linear regression model to repedict franchise value based on annual revenue generated.
a) Construct a scatter plot.
b) Use the least-squares method to dtermine the regression coefficients b0 and b1.
c) Predict the value of a baseball franchise that generates $200 million of annual revenue.© BrainMass Inc. brainmass.com June 4, 2020, 2:22 am ad1c9bdddf
This solution provides assistance with the linear regression problem.