Question

The sports bar owner runs a regression to test whether there is a relationship between Red Sox away games and daily revenue. Which of the following statements about the regression output is true?A. The average daily revenue for days when the Red Sox do not play away is $1,768.32.B. The average daily revenue for days when the Red Sox play away is $1,768.32.C. The average daily revenue for days when the Red Sox play away is $2,264.57.D. The average daily revenue for days when the Red Sox do not play away is $1,272.07.E. On average, the bar’s revenue is $496.25 higher on days when the Red Sox play away than on days when they do not.
SUMMARY OUTPUT
Regression Statistics
Multiple R 0.4746
R Square 0.2252
Adusted R square 0.2091
Standard Error 466.32
Observations 50
ANOVA
Significance F MS df 0.0005 13.95 3.03E 06 3.03E+06 Regression 1.04E+07 2.17E+05 48 Residual 135E+07 49 Total Lower 95% Upper 95% tStot Standard Error P-vatue Coefficients 1968.21 17.79 1,568.42 99 42 0.0000 1768.32 Intercept Red Sox away game 763.38 00005 3.74 229.13 132.85 (1-yes, 0-no) 496.25 The average daily revenue for days when the Red Sox do not play away is $1,768.32

Answer 1

Answer:

Options A, C and D are true.

- The average daily revenue for days when the Red Sox do not play away is $1,768.32.

- The average daily revenue for days when the Red Sox play away is $2,264.57.

- On average, the bar’s revenue is $496.25 higher on days when the Red Sox play away than on days when they do not.

Step-by-step explanation:

The complete Question is presented in the attached image to this solution.

Analyzing the options at a time

A) The average daily revenue for days when the Red Sox do not play away is $1,768.32.

This option is true as 1768.32 is the intercept which is the average daily revenue when the Red Sox=0, that is, 0=no, when red sox do not play away.

B) The average daily revenue for days when the Red Sox play away is $1,768.32.

This is false because when the Red Sox play away, the value is 1 and the average revenue = 1768.32 + 496.25 = $2,264.57

C) The average daily revenue for days when the Red Sox play away is $2,264.57.

This is true. I just gave the explanation under option B.

D) The average daily revenue for days when the Red Sox do not play away is $1,272.07.

This is false. The explanation is under option A.

E) On average, the bar’s revenue is $496.25 higher on days when the Red Sox play away than on days when they do not.

This is true. It is evident from the table that the 0 and 1 coefficient is 496.25. This expresses the difference in average daily revenue when the Red Sox games are played away and when they are not.

Hope this Helps!!!