Can annual sports team revenues be used to predict franchise​ values? Team   Revenue ($mil)   Value ($mil)…

Annual revenue of sports teams can be used to predict franchises
value?

Team Income ($M) Value ($M)
Team 1 554 2806
Team 2 676 3437
Team 3 371 1333
Team 4 628 3202
Crew 5 559 1852
Team 6 312 691
Team 7 342 858
Team 8 355 851
Team 9 394 869
Team 10 219 482
Team 11 258 579
Team 12 224 513
Team 13 516 414
Team 14 203 347
Crew 15 156 329
Crew 16 177 326
Team 17 162 307
Team 18 332 599
Team 19 411 863
Team 20 157 296

A. has
Evidence for a linear relationship between annual income
The Creation and Value of a Football Franchise?

– What are the alternative and null hypotheses

worth?

Test statistics? is

B. constructs a 95% confidence interval
Median estimate for all revenue-generating football franchises
$300 million in annual sales

C. Construct 95% prediction interval
A single football franchise generates $300 in value
Annual sales (millions)

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