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TABLE 15-9
Many factors determine the attendance at Major League Baseball games. These factors can include when the game is played, the weather, the opponent, whether or not the team is having a good season, and whether or not a marketing promotion is held. Data from 80 games of the Kansas City Royals for the following variables are collected.
ATTENDANCE = Paid attendance for the game
TEMP = High temperature for the day
WIN% = Team's winning percentage at the time of the game
OPWIN% = Opponent team's winning percentage at the time of the game WEEKEND - 1 if game played on Friday, Saturday or Sunday; 0 otherwise PROMOTION - 1 = if a promotion was held; 0 = if no promotion was held
The regression results using attendance as the dependent variable and the remaining five variables as the independent variables are presented below.
The coefficient of multiple determination ( R 2 j ) of each of the 5 predictors with all the other remaining predictors are,
respectively, 0.2675, 0.3101, 0.1038, 0.7325, and 0.7308
-Referring to Table 15-9, which of the following assumptions is most likely violated based on the residual plot for TEMP?
Interest
The charge for borrowing money or the return on invested capital, usually expressed as a percentage of the principal amount over a specific period.
Compounded Annually
A method where interest is calculated once a year on the initial principal and all accumulated interest from previous periods.
Plant Expansion
The process of increasing the capacity or capabilities of a manufacturing or production facility.
Sinking Fund Deposits
Money regularly set aside by a company to repay a debt or replace an asset in the future.
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