ACCT 2230 Lecture 17: Econ Stats assignment 5.docx
13 Feb 2015
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This means that our y-variable which is player salary should increase as our x-variable which is total player point (or the players overall production) increases. This is why our x-variable should be able to explain our y-variable: simple regression: Sum xi = 6120 sum yi = ,389,167. 00 xbar = 61. 2 ybar = 4,283,891. 67 b1 = sxy/sx^2. Sxy = 1/n-1 [sum xiyi ((sum xi sum yi)/n)] Sx^2 = 1/n-1 [sum xi^2 ((sum xi)^2)/n) Sx^2 = 116. 32 b1 = sxy/sx^2 b1 = 10,033,422. 56/ 116. 32 b1 = 86,257. 07 b0 = ybar b1xbar b0 = 4283891. 67 (86257. 07)(61. 2) b0 = 4283891. 67 5278932. 68 b0 = -995041. 01. Ypred = -995041. 01 + 86257. 07x: y = -995041. 01 + 86257. 07(55) If 0 points were achieved the salary will most likely be a minimum contract or 0 dollars and not be on a team because they have no production in the league.
