In sports betting, Las Vegas sports books establish winning margins for a team that is favored to win a game. An individual can place a wager on the game and will win if the team bet upon wins after accounting for the spread. For example, if Team A is favored by 5 points and wins the game by 7 points, then a bet on Team A is a winning bet. However, if Team A wins the game by only 3 points, then a bet on Team A is a losing bet. For NCAA Division I basketball games, a least-squares regression with explanatory variable home team Las Vegas spread, x, and response variable home team winning margin, y, is ModifyingAbove y with caretequals1.007 x minus 0.012. Complete parts (a) through (e) below.
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