Question: Assignment Problem: The accounting numbers for major league baseball franchises are given in the table below. All figures are in millions of dollars. The numerical

Assignment Problem:

The accounting numbers for major league baseball franchises are given in the table below. All figures are in millions of dollars. The numerical variables are GtReceit (Gate Receipts), MediaRev (Media Revenue), StadRev (Stadium Revenue), PlayerCt (Player Costs), OpExpens (Operating Expenses), and FranValu (Franchise Value).

Use Minitab to answer the following questions:

a. Fit a multiple regression model relating Franchise Value to all other variables. Is the regression significant? Explain.

b. What is the average increase/decrease in the Franchise value when the Stadium revenue increases by $1 million?

c. Compute a forecast of the Franchise Value if the independent variables have the following values: Gate receipts = $10 million, Media revenue = $25 million, Stadium revenue = $9 million, Player costs = $22 million, and Operating expenses = $35 million.

d. What is the value of the standard error of the estimate (S). Interpret its meaning in terms of this problem.

e. What is the value of the coefficient of determination (R²). Interpret its meaning in terms of this problem.

f. What are the values of the variance inflation factors (VIFs) for the independent variables. Is multicollinearity a problem for these data? Why?

g. Examine the t statistics for checking the significance of the individual predictor variables. Which predictor variable(s) can be eliminated?

h. How can this regression equation be improved? (Hint: Apply the "All possible regressions" method in Minitab to answer this part).

i. Apply the "stepwise method" in Minitab and compare the results with your answer in part (h).

Table 1: Accounting Numbers for Major League Baseball ($ millions)

Franchise	GtReceit	MediaRev	StadRev	PlayerCt	OpExpens	FranValu
NyYank	19.4	62	7.4	29.8	59.6	200
LADodge	26.6	32.5	19	36	72	180
NYMets	22.9	50	16	35.2	70.4	170
TorBlJay	44.5	30	12	28.7	62.4	160
BosRdSox	23.5	40.5	14.3	35.4	70.8	160
BaltOrio	18	24.4	5	15.8	39.5	140
ChWhSox	27.5	24.7	19.3	18	60	140
StLCard	19.9	25	12	23.2	45.4	132
ChCubs	22.8	27.5	12	29	57	132
TxRanger	19	26.5	14	20.7	47.6	123
KCRoyals	16.9	20.5	14.5	30.4	60.8	117
PhilPhil	15.2	23.2	7.6	20.7	43.4	115
OakAthlt	25.7	28	10	39.2	66.6	115
CalAngls	18	27.9	5	34.3	61.7	103
SFGiants	15.5	26.2	5	33.3	52.3	99
CinnReds	17.1	24.4	5.3	27.1	47.8	98
SDPadres	14.6	23.1	7.5	24.4	48.8	96
HousAstr	10.6	26.2	8	12.1	31.5	95
PittPirt	16.2	20.9	5.5	24.9	49.8	87
DetTiger	15.6	28.8	5	32.1	54.4	85
AtBraves	15.4	18.9	3.8	20.4	41.8	83
MinnTwin	17.2	20.5	3.2	24.1	48.2	83
SeatMar	15.5	21	5	17.4	41.8	79
MilBrews	14.2	19.4	3	25.4	50.2	77
ClevIndn	9.5	23.7	6.6	19.5	47.8	77
MonExpos	10.7	22.5	3	21.8	43.6	75

The solution is through the Minitab program, with a copy of the Minitab report attached

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