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Using the data from Problem 1, answer the following questions:
a) What is the regression line that best fits the data?
b) Is the relationship between payroll and wins statistically significant at the 0.05 level?
c) What is the predicted number of wins with a $70 million payroll?
d) What is the 99 percent confidence interval around the mean number of wins for a $70 million payroll?
e) What percent of the variation in wins is explained by the payroll?
Problem 1
The following table shows the payroll for 10 major league baseball teams (in millions) for the 2002 season, along with the number of wins for that year.
Calculate the correlation coefficient. Test to see whether the correlation coefficient is not equal to 0 at the 0.05 level.
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