The management of a professional baseball team is in the process of determining the
budget for next year. A major component of future revenue is attendance at the home
games. In order to predict attendance at home games, the team statistician has used a
multiple regression model with dummy variables. The model is of the form y = β0 +
β1x1 + β2x2 + β3x3 + ε, where:
y = attendance at a home game.
x1 = current power rating of the team on a scale from 0 to 100 before the game.
x2 and x3 are dummy variables, and they are defined below.
x2 = 1, if weekend,
x2 = 0, otherwise.
x3 = 1, if weather is favorable,
x3 = 0, otherwise.
After collecting the data, based on 30 games from last year, and implementing the
above stated multiple regression model, the team statistician obtained the following
least squares multiple regression equation:
The multiple regression computer output also indicated the following:
Interpret the estimated model coefficient b3.