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The University Of Wyoming Men’s Basketball Team Case Solution & Answer

The University Of Wyoming Men’s Basketball Team Case Study Solution

Case brief

University of Wyoming – hosts a number of home games played by the basketball team, which comprise of men, and the team enormously generate massive amount of profit returns with mutual understanding and collaboration with the athletic department of the university. During 2010-2011, the academic year’s budget for the athletic department amounted to $23 million, which was used to cover the expenses, including: facility management, game management cost, equipment, recruiting, team travel, student scholarship and staff salaries. While the budget provided by the university to the athletic department was $9 million; the major proportion of the expenses were covered by the department itself, through the concession revenues and the tickets’ sales. Between 2009 and 2010, when the season of games ended; the department was concerned about estimating the revenues for forthcoming seasons. It was not an easy task to estimate the revenues, despite of setting the price of tickets due to the reason that the schedule of home games was yet to be known.

Identify the variables that are likely to be related to ticket and concession sales

There are various variables, which are likely to be related to the concession and ticket sales, such as: days comprised of both weekdays and weekends. Another considerable variable,which is likely to be related to the concession and ticket sales, is an opponent comprised of both conference as well as non-conference teams. Through associating with opponent; the university would be benefited in terms of avoiding the further investment of financing requirement on expanding new groups, thus generating revenues. Additionally, the performance of university of Wyoming’s team is another variable that is associated to the ticket and concession sales as the outstanding performance of the team would motivate the audience who are its followers, hence resulting in an increased demand of tickets of home games.

Use multiple linear regression to develop two models: one for predicting ticket sales and one for predicting concession sales.

The regression model is developed for both concession revenues and single ticket revenues by assuming the winning percentage, an opponent, including: conference and non-conference and day including weekdays, and weekends as an independent variable and the revenue as dependent variable. The numeric value is allocated to the variables, in order to develop the model. The weekday is allocated by 0; whereas, the weekend is allocated by 1. Similarly, the conference is allocated by 1 and non-conference is allocated 0.

For the regression analysis of the concession revenue;the multiple R value is 77.6 percent, which means that the data is 77.6 percent fitted to the regression line. Also, the model for the concession sales is as follows:

Concession Revenues = -915 +1658(Day) +1712(Opponent) +6231(Win Percentage)

 

On the other hand, the regression model is developed for ticket sales by assuming the winning percentage, opponent including: conference and non-conference and day including weekdays and weekends as the independent variable and the revenue as the dependent variable. The single ticket revenue is calculated by multiplying the single game ticket sold,with the price of each ticket of $12. For the regression analysis of single game ticket revenue; the multiple R value is 60.6 percent, which means that the data is 60.6 percent fitted to the regression line. Also, the model for the single game ticket revenue is as follows:

Single-Game Tickets Sold = -132 +509(Day) +596(Opponent) +2049(Win Percentage)…………

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