A local state university athletic department wants to develop its budget for the coming year, using a
Question:
A local state university athletic department wants to develop its budget for the coming year, using a forecast for football attendance. Football attendance accounts for the largest portion of its revenues, and the athletic director believes attendance is directly related to the number of wins by the team. The business manager has accumulated total annual attendance figures for the past 8 years:
Attendance | Wins | Advertising |
36,300 | 4 | $29,500 |
40,100 | 6 | $55,700 |
41,200 | 6 | $71,300 |
53,000 | 8 | $87,000 |
44,000 | 6 | $75,000 |
45,600 | 7 | $72,000 |
39,000 | 5 | $55,300 |
47,500 | 7 | $81,600 |
Given the number of returning starters and the strength of the schedule, the athletic director believes the team will win at least seven games next year. Develop a simple regression equation for these data to forecast attendance for this level of success.
- What is Total Sum of Squares (TSS)?
- What is the coefficient of determination, r 2 ?
- Interpret r 2 .
- If there were 8 wins, what would you predict the attendance to be? Use a 95.44% confidence interval. Please interpret.
Instead of predicting attendance based only on wins, include a second variable – advertising.
- What is the multiple regression equation?
- What is the coefficient of determination, r 2 ?
- Interpret r 2 .
What is the partial r 2 y2.1 ? Interpret your result.
Provide your spreadsheet results. Interpret your results. What would you advise the business manager?
Accounting Principles
ISBN: 978-1119411482
13th edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso