The Management of a Professional Baseball Team Is in the Process

question 112

Essay

The management of a professional baseball team is in the process of determining the budget for next year.A major component of future revenue is attendance at the home games.In order to predict attendance at home games,the team's statistician has used a multiple regression model with dummy variables.The model is of the form: y = β₀+ β₁x₁+ β₂x₂+ β₃x₃+ ε where:
Y = attendance at a home game
x1= current power rating of the team on a scale from 0 to 100 before the game.
x2and x3are dummy variables,and they are defined below.
x2= 1,if weekend
x2= 0,otherwise
x3= 1,if weather is favourable
x3= 0,otherwise
After collecting the data based on 30 games from last year and implementing the above stated multiple regression model,the team statistician obtained the following least squares multiple regression equation: $$\hat { y } = - 1050 + 250 x _ { 1 } + 2200 x _ { 2 } + 5400 x _ { 3 }$$ The multiple regression compute output also indicated the following: $$s _ { b _ { 1 } } = 800 , s _ { b _ { 2 } } = 1000 , s _ { b _ { 3 } } = 1850$$
-Assume that the overall model is useful in predicting the game attendance and the team statistician wants to know if the mean attendance is higher on the weekends as compared to the weekdays.At alpha = .05,test to determine if the attendance is higher on weekend home games.

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Definitions:

Equilibrium

A state in which all acting influences are balanced or canceled by equal opposing forces, resulting in a stable system.

Reactants

Ingredients that are present from the start in a chemical reaction, getting used up as they generate the outcome products.

Equilibrium

The state in which both reactants and products are present in concentrations which have no further tendency to change with time, usually in a closed system.

Product

The result of multiplying two or more numbers together or the substances formed at the end of a chemical reaction.