The Relationship Between the Number of Games Won by an NHL

question 18

Multiple Choice

The relationship between the number of games won by an NHL team and the average attendance at their home games is analyzed.A regression analysis to predict the average attendance from the number of games won gives the model
= -3,000 + 176 wins.One team averaged 4,240 fans at each game.They won 57 times.Calculate the residual and explain what it means.

• A)17,272 people.The team averaged 17,272 less fans than would be predicted for a team with 57 wins.
• B)2,792 people.The team averaged 2792 more fans than would be predicted for a team with 57 wins.
• C)-2,792 people.The team averaged 2792 less fans than would be predicted for a team with 57 wins.
• D)4,223 people.On average the team will have 4,223 extra people.
• E)7,032 people.The team were expected to average 7,032 people for each game.

---

Definitions:

Insurance Expense

The cost recognized in accounting for premiums paid on insurance policies covering various risks to a business.

Financing Activities

Transactions and events where cash is raised from or repaid to investors and creditors, such as issuing equity or borrowing.

Company's Stock

Equity securities representing ownership interests in a corporation, giving shareholders a claim on its earnings and assets.

Direct Method

A way of preparing the cash flow statement where actual cash flows from operating activities are reported instead of adjustments to net income.