The Management of a Professional Baseball Team Is in the Process

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 statistician has used a multiple regression model with dummy variables.The model is of the form: y = $\beta$ ₀ + $\beta$ ₁x₁ + $\beta$ ₂x₂ + $\beta$ ₃x₃ + $\varepsilon$ where:
Y = attendance at a home game
x₁ = current power rating of the team on a scale from 0 to 100 before the game.
x₂ and x₃ are dummy variables,and they are defined below.
x₂ = 1,if weekend
x₂= 0,otherwise
x₃= 1,if weather is favorable
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: The multiple regression compute output also indicated the following: Assume that the overall model is useful in predicting the game attendance.Assume today is Wednesday morning and the weather forecast indicates sunny,excellent weather conditions for the rest of the day.Later today,there is a home baseball game for this team.Assume that the current power rating of the team is 85 and predict the attendance for today's game.