The data d gives the values of the 29 teams in the National Basketball Associati

Question

The data d gives the values of the 29 teams in the National Basketball Association, along with their operating incomes and revenues (given in millions of dollars). Plots and correlations show that revenue predicts team value much better than does operating income. The least-squares regression line for predicting value from revenue is as follows value =-86.641 + 3.789 revenue (a) What is the slope of this line? (Round your answer to three decimal places.) (b) The LAKERS are the NBA's most valuable team, valued at $457 million, with $147 million in revenue. Use the line to predict the value of the LAKERS from their revence. what is the error in this prediction? (Round your answer to three decimal places.) X millions of dollars decimal places.) (c) What is the correlation of revenue and value? (Round your answer to three

Explanation / Answer

Solutionb:

value=-86.641+3.789(revenue)

revenue=147

preedicted value =-86.641+3.789(147)

=470.342

error=actual -predicted

=457-470.342

=-13.342

ANSWER:-13.342

put -13.342 as answer if it is not accepting put the answer as 13.342

as revenue cant be negative

negative sign here indicates that that the actual value is less than the predicted value.

Solutionc:

Rcode to find correlation coeff:

value <- c(457,449,408,403,354,345,314,301,282,274,274,253,252,
232,209,203,198,186,170,165,159,157,148,144,136,128,127,126,117)  

Revenue <- c(147,135,132,117,109,99,103,110,79,96,85,75,81,79,66,74,78,95,
77,78,68,81,63,55,78,48,79,66,50)
cor(value,Revenue)

Output:

0.908588

therefore,r=0.909(three decimals)

r=0.909

ANSWER:0.909

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