Washington Capitals played two weekday games against Philly Flyers. We are going to study the relationship between ticket price and team performance of Washington Capitals in the two games. Question 1: Import the ticket transaction data set and what teams (besides Washington Capitals) and what seat types are inside the data set? Clean the transaction data and only keep the ticket transactions of Washington Capitals in the CB/LC/LG/MC/MG seat zones. Discuss how many ticket transactions remain after data cleaning? and the dates of the two games? (10pts) Answer: Question 2: Import the team performance data, calculate DIFFs of both teams. Calculate the correlation between the DIFFs and visualize them through the regular season. How did both teams perform? (10pts.) Answer: Question 3: Merge the DIFFs into the ticket transaction data and calculate the correlation between ticket price and the DIFFs within each seat type. What���s the relationship between price and team performance? (10pts.) Answer: Question 4: Run the log-price regression with respect to three independent variables: both home and opponent team performance, and seat types. Show the regression results. Based on the results of Q2-Q4, describle the effect of team performance on ticket price. (10pts.) Answer: Question 5: If the net goal of both teams is ten points at one month before the next game, estimate the ticket price of each seat type using the regression results. If your budget is 150 dollars, which seat type you cannot afford? (10pts.) Answer: Question 6: Run the weighted regression to estimate (nu) (trend) and (sigma^2) (volatility) of both home and opponent team performance. What are the estimates? (10pts.) Answer: Question 7: Calculate the (delta)-values of each seat-type. What���s the ticket price trend? (10pts.) Answer: Question 8: Visualize the price trend over lag-time for each seat type. (10pts.) Question 9: Continue on the previous question and run the price trend regression over lag-time, calculate the (theta)-values and compare them with the (delta)-values. Do we have consistent estimates for the price trend? (10pts.) Answer: Question 10: Stubhub charges 15 percent service fee to ticket buyers and 10 percent to ticket sellers. If you are a broker that wants to flip tickets (buy-and-sell) in the secondary market throughout the regular season, what���s your best speculation strategy (e.g., which seat class to bet on and for how long) and how much expected investment return you can make, given your answer of the previous question? (10pts.) Answer:
