The value of a sports franchise is directly related to the amount of revenue a franchise...

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The value of a sports franchise is directly related to the amount of revenue a franchise can generate. The accompanying data table shows the annual revenue (in millions of dollars) and value (in millions of dollars) for 30 baseball franchises. Complete parts (a) through (c) below. Click the icon to see the annual revenue and value data table. Revenue Value 215 518 176 372 269 875 196 468 175 387 188 370 155 341 a. Construct a 90% confidence interval estimate of the mean value of all baseball franchises that generate $200 million of annual revenue 159 400 440 1597 |Y|X=200 S 156 292 (Round to two decimal places as needed.) 195 434 159 319 b. Construct a 90% prediction interval of the value of an individual baseball franchise that generates $200 million of annual revenue. 176 453 165 325 YX=200 S 169 376 (Round to two decimal places as needed.) 186 449 243 728 c. Explain the difference in the results of (a) and (b). Choose the best explanation below. A. The prediction interval is wider than the confidence interval because the franchise value data are larger than the franchise revenue data. B. The prediction interval is wider than the confidence interval because there is more variation in predicting an individual value than in estimating a mean value. C. The prediction interval is wider than the confidence interval because the standard deviation of the value data is larger than the standard deviation of the revenue data. 166 334 179 380 143 320 192 454 245 727 172 353 264 854 229 540 145 288 191 484 D. The prediction interval is wider than the confidence interval because simple linear regression is inadequate for analyzing these data. They should be the same. 158 413 201 483 184 383 The value of a sports franchise is directly related to the amount of revenue a franchise can generate. The accompanying data table shows the annual revenue (in millions of dollars) and value (in millions of dollars) for 30 baseball franchises. Complete parts (a) through (c) below. Click the icon to see the annual revenue and value data table. Revenue Value 215 518 176 372 269 875 196 468 175 387 188 370 155 341 a. Construct a 90% confidence interval estimate of the mean value of all baseball franchises that generate $200 million of annual revenue 159 400 440 1597 |Y|X=200 S 156 292 (Round to two decimal places as needed.) 195 434 159 319 b. Construct a 90% prediction interval of the value of an individual baseball franchise that generates $200 million of annual revenue. 176 453 165 325 YX=200 S 169 376 (Round to two decimal places as needed.) 186 449 243 728 c. Explain the difference in the results of (a) and (b). Choose the best explanation below. A. The prediction interval is wider than the confidence interval because the franchise value data are larger than the franchise revenue data. B. The prediction interval is wider than the confidence interval because there is more variation in predicting an individual value than in estimating a mean value. C. The prediction interval is wider than the confidence interval because the standard deviation of the value data is larger than the standard deviation of the revenue data. 166 334 179 380 143 320 192 454 245 727 172 353 264 854 229 540 145 288 191 484 D. The prediction interval is wider than the confidence interval because simple linear regression is inadequate for analyzing these data. They should be the same. 158 413 201 483 184 383