4-30 In 2012, the total payroll for the New York Yankees was almost $200 million, while the total payroll for the Oakland Athletics (a team known for using base- ball analytics or sabermetrics) was about $55 million, less than one-third of the Yankees payroll. In the fol- lowing table, you will see the payrolls (in millions) and the total number of victories for the baseball teams in the American League in the 2012 season. Develop a regression model to predict the total num- ber of victories based on the payroll. Use the model to predict the number of victories for a team with a pay- roll of $79 million. Based on the results of the com- puter output, discuss the relationship between payroll and victories.

4-30 In 2012, the total payroll for the New York Yankees was almost $200 million, while the total payroll for the Oakland Athletics (a team known for using base- ball analytics or sabermetrics) was about $55 million, less than one-third of the Yankees payroll. In the fol- lowing table, you will see the payrolls (in millions) and the total number of victories for the baseball teams in the American League in the 2012 season. Develop a regression model to predict the total num- ber of victories based on the payroll. Use the model to predict the number of victories for a team with a pay- roll of $79 million. Based on the results of the com- puter output, discuss the relationship between payroll and victories.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 11PA

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