The value of a sports franchise is directly related to the a

The value of a sports franchise is directly related to the amount of revenue a franchise can generate. The accompanying data table shows the annual revenue (in millions of dollars) and value (in millions of dollars) for 30 baseball franchises.

a. Construct a 95% confidence interval estimate of the mean value of all baseball franchises that generate $175 million of annual revenue.

b. Construct a 95% prediction interval of the value of an individual baseball franchise that generates $175 million of annual revenue.

c. Explain the difference in the results of (a) and (b).

a.________Y|X=175_____

(Round to four decimal places as needed.)

b._________YX=175______

(Round to four decimal places as needed.)

c. Choose the best explanation below:

A.

The prediction interval is wider than the confidence interval because the franchise value data are larger than the franchise revenue data.

B.

The prediction interval is wider than the confidence interval because simple linear regression is inadequate for analyzing these data. They should be the same.

C.

The prediction interval is wider than the confidence interval because there is more variation in predicting an individual value than in estimating a mean value.

D.

The prediction interval is wider than the confidence interval because the standard deviation of the value data is larger than the standard deviation of the revenue data.

Revenue,Value
215,522
168,371
265,867
197,463
175,390
191,373
151,339
166,401
442,1602
150,295
193,439
155,320
175,450
163,328
168,375
193,448
248,729
162,329
187,383
149,320
186,455
248,730
176,351
264,855
238,538
145,291
198,492
154,411
199,479
184,387

Solution