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 following 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 number of victories based on the payroll. Use the model to predict the number of victories for a team with a payroll of $ 79 million. Based on the results of the computer output, discuss the relationship between payroll andvictories.
Download free solution (doc)