54. Valuation of a Major League Baseball Team. The following data show the annual revenue ($ millions) and the estimated team value ($ millions) for 30 Major League Baseball teams (Forbes website).

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 Team Revenue ($ millions) Value ($ millions)
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 Source: Forbes website, ( HYPERLINK "https://www.forbes.com/sites/mikeozanian/2018/04/11/baseball-team -values-2018/"https://www.forbes.com/sites/mikeozanian/2018/04/11/baseball-team-values-2018/#2226481b3fc0)

a. Develop a scatter diagram with Revenue on the horizontal axis and Value on the vertical axis. Looking at the scatter diagram, does it appear that there are any outliers and/or influential observations in the data?

b. Develop the estimated regression equation that can be used to predict team value given the annual revenue.

c. Use residual analysis to determine whether any outliers and/or influential observations are present. Briefly summarize your findings and conclusions.55. Does a high value of r2 imply that two variables are causally related? Explain.