Question: Revenue and value of NBA teams. Table 2.1 (page 98) gives the values of the 29 teams in the National Basketball Association, along with their operating incomes and revenues. Plots and correlations show that revenue predicts team value much better than does operating income. The least-squares regression line for predicting value from revenue is

(a) What is the slope of this line? Express in simple language what the slope says about the relationship of value to revenue.

(b) The Los Angeles Lakers are the NBA’s most valuable team, valued at $447 million, with $149 million in revenue. Use the line to predict the value of the Lakers from their revenue. What is the error in this prediction?

(c) The correlation between revenue and team value is r = 0.9265. What does the correlation say about the success of the regression line in predicting the values of the 29 teams?