You are asked to predict the revenue from sales of season tickets, single game tickets, and concession
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Question:
- You are asked to predict the revenue from sales of season tickets, single game tickets, and concession items for a single season. In order to make predictions, you need to develop a linear regression model, and make assumptions on the schedule (including the number of home games in total, the number of conference games, and the number of weekend games).
- Revenue is the sum of three parts. Total revenue = revenue from single-game tickets + revenue from seasonal tickets + revenue from concession sales
| Season | Number of Season Tickets Sold | Win Percentage |
| 2006 - 2007 | 4088 | 0.619 |
| 2007 - 2008 | 4120 | 0.400 |
| 2008 - 2009 | 3844 | 0.643 |
| 2009 - 2010 | 3819 | 0.323 |
| Date of Home Game | Opponent | Single Game Tickets Sold | Concession Revenues |
| Saturday, November 04, 2006 | Non-Conference | 1704 | $3,158.40 |
| Tuesday, November 07, 2006 | Non-Conference | 716 | $1,838.75 |
| Saturday, November 11, 2006 | Non-Conference | 1218 | $5,767.53 |
| Wednesday, November 15, 2006 | Non-Conference | 1083 | $4,116.60 |
| Saturday, November 18, 2006 | Non-Conference | 1755 | $5,246.31 |
| Wednesday, November 29, 2006 | Non-Conference | 909 | $2,582.50 |
| Wednesday, December 06, 2006 | Non-Conference | 1107 | $3,687.35 |
| Saturday, December 16, 2006 | Non-Conference | 909 | $4,766.02 |
| Wednesday, January 10, 2007 | Conference | 2581 | $4,775.50 |
| Saturday, January 13, 2007 | Conference | 3694 | $8,222.27 |
| Wednesday, January 24, 2007 | Conference | 3462 | $8,651.67 |
| Saturday, January 27, 2007 | Conference | 2474 | $8,907.81 |
| Tuesday, February 06, 2007 | Conference | 1879 | $5,289.60 |
| Saturday, February 17, 2007 | Conference | 2778 | $7,365.01 |
| Wednesday, February 21, 2007 | Conference | 1297 | $5,214.18 |
| Saturday, March 03, 2007 | Conference | 2380 | $6,487.08 |
| Saturday, November 03, 2007 | Non-Conference | 995 | $3,200.62 |
| Tuesday, November 06, 2007 | Non-Conference | 717 | $2,329.95 |
| Saturday, November 10, 2007 | Non-Conference | 1266 | $3,424.17 |
| Monday, November 26, 2007 | Non-Conference | 1615 | $2,714.35 |
| Saturday, December 08, 2007 | Non-Conference | 1469 | $3,392.11 |
| Saturday, December 29, 2007 | Non-Conference | 1033 | $3,131.53 |
| Monday, December 31, 2007 | Non-Conference | 688 | $1,509.28 |
| Saturday, January 05, 2008 | Conference | 941 | $3,180.81 |
| Wednesday, January 16, 2008 | Conference | 1095 | $2,847.82 |
| Saturday, January 26, 2008 | Conference | 1894 | $5,050.42 |
| Saturday, February 02, 2008 | Conference | 1853 | $5,597.73 |
| Wednesday, February 06, 2008 | Non-Conference | 660 | $1,615.64 |
| Wednesday, February 13, 2008 | Conference | 601 | $1,961.13 |
| Tuesday, February 19, 2008 | Conference | 757 | $2,490.31 |
| Saturday, February 23, 2008 | Conference | 1411 | $4,283.53 |
| Saturday, March 01, 2008 | Conference | 1664 | $4,857.05 |
| Friday, November 07, 2008 | Non-Conference | 941 | $2,101.67 |
| Friday, November 14, 2008 | Non-Conference | 839 | $2,383.71 |
| Wednesday, November 19, 2008 | Non-Conference | 3084 | $2,713.87 |
| Saturday, November 22, 2008 | Non-Conference | 1559 | $3,143.83 |
| Wednesday, November 26, 2008 | Non-Conference | 593 | $2,642.14 |
| Saturday, November 29, 2008 | Non-Conference | 937 | $3,717.70 |
| Tuesday, December 16, 2008 | Non-Conference | 522 | $1,838.49 |
| Saturday, December 20, 2008 | Non-Conference | 635 | $4,082.60 |
| Wednesday, January 14, 2009 | Conference | 1723 | $4,968.37 |
| Saturday, January 24, 2009 | Conference | 3172 | $6,878.54 |
| Tuesday, January 27, 2009 | Conference | 987 | $2,099.78 |
| Saturday, February 07, 2009 | Conference | 1995 | $5,658.42 |
| Wednesday, February 18, 2009 | Conference | 855 | $2,374.29 |
| Saturday, February 21, 2009 | Conference | 1953 | $5,673.95 |
| Wednesday, March 04, 2009 | Conference | 2235 | $6,261.72 |
| Saturday, March 07, 2009 | Conference | 2972 | $7,623.75 |
| Saturday, November 07, 2009 | Non-Conference | 2273 | $3,503.78 |
| Friday, November 13, 2009 | Non-Conference | 1534 | $2,879.42 |
| Wednesday, November 18, 2009 | Non-Conference | 729 | $1,958.48 |
| Saturday, November 21, 2009 | Non-Conference | 1483 | $3,203.87 |
| Friday, November 27, 2009 | Non-Conference | 742 | $2,355.42 |
| Saturday, November 28, 2009 | Non-Conference | 652 | $1,759.35 |
| Sunday, November 29, 2009 | Non-Conference | 488 | $1,521.30 |
| Saturday, December 05, 2009 | Non-Conference | 2446 | $2,057.57 |
| Sunday, December 20, 2009 | Non-Conference | 515 | $3,732.54 |
| Wednesday, December 30, 2009 | Non-Conference | 599 | $2,200.72 |
| Saturday, January 02, 2010 | Non-Conference | 652 | $2,525.92 |
| Wednesday, January 06, 2010 | Conference | 583 | $2,064.41 |
| Saturday, January 09, 2010 | Conference | 1012 | $3,744.89 |
| Saturday, January 16, 2010 | Conference | 2327 | $6,715.82 |
| Wednesday, January 27, 2010 | Conference | 1009 | $2,729.87 |
| Wednesday, February 03, 2010 | Conference | 897 | $2,035.50 |
| Saturday, February 13, 2010 | Conference | 1519 | $4,558.25 |
| Saturday, February 20, 2010 | Conference | 1335 | $2,428.80 |
| Tuesday, March 02, 2010 | Conference | 707 | $1,624.36 |
Please use the following questions to guide your preparation of the case:
Assume Spark’s projection for the team’s win percentage for the upcoming season is 50%, provide a total revenue forecasting for the season. Please also assume only the minimum number of home games will be played – eight conference games, eight non-conference games, each eight split evenly between weekends and weekdays.
Following Question 1’s instructions, but use a random win percentage, with each of the win percentages of the four recent seasons equally likely to occur in the upcoming season.
How accurate are your predictions based on the standard errors of the predicted numbers (hint: use simulation)?
Expert Answer:
Related Book For 
Applied Statistics in Business and Economics
ISBN: 978-0073521480
4th edition
Authors: David Doane, Lori Seward
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