1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lutik1710 [3]
2 years ago
12

Labor economists have extensively researched the determinants of earnings. Invest-ment in human capital, measured in years of ed

ucation, and on the job training aresome of the most important explanatory variables in this research. You decide toapply earnings functions to the field of sports economics by finding the determinantsfor baseball pitcher salaries. You collect data on 455 pitchers for the 1998 baseballseason and estimate the following equation using OLS and heteroskedasticitv-robust standard errors:
Ln (Eami) = 12.45 + 0.052 x Years + 0.00089 x Innings + 0.0032 x Saves
(0.08) (0.026) (0.00020) (0.0018)
- 0.0085 x ERA, R^2 = 0.45, SER = 0.874
(0.0168)
where Earn is annual salary in dollars, Years is number of years in the major leagues, Innings is number of innings pitched during the career before the 1998 season, Saves is number of saves during the career before the 1998 season, and ERA is the earned run average before the 1998 season.
A) What happens to earnings when the pitcher stays in the league for one additional year? Compare the salaries of two relievers, one with 10 more saves than the other. What effect does pitching 100 more innings have on the salary' of the pitcher? What effect does reducing his ERA by 1.5? Do the signs correspond to your expectations? Explain.
B) Are the individual coefficients statistically significant? Indicate the level of significance you used and the type of alternative hypothesis you considered.
C) Although you are quite impressed with the fit of the regression, someone suggests that you should include the square of years and innings as additional explanatory variables. Your results change as follows:
Ln (Eami) = 12.15 + 0.160 x Years + 0.000268 x Innings + 0.0063 x Saves
(0.05) (0.039) (0.00030) (0.0010)
-0.0584 x ERA - 0.0165 x Years - 0.00000045 x Innings
(0.0165) (0.0026) (0.00000012)
R^2 = 0.69, SER = 0.666
What is her reasoning? Are the coefficients of the quadratic terms statistically significant? Are they meaningful?
D) Calculate the effect of moving from two to three years, as opposed to from 12 to 13 years.
E) You also decide to test the specification for stability across leagues (National League and American League) by including a dummy variable for the National League and allowing the intercept and all slopes to differ. The resulting F-statistic for restricting all coefficients that involve the National League dummy variable to zero, is 0.40. Compare this to the relevant critical value from the table and decide whether or not these additional variables should be included.
Mathematics
1 answer:
never [62]2 years ago
8 0

Answer:

Kindly check explanation for other solutions

Years, Inning and saves are statistically significant ; ERA is not.

Step-by-step explanation:

Earning for staying one additional year :

Multiply slope value of years * 1 = 0.052 * 1 * 100 % = 5.2% (earning increases by 5.2%)

Relives with 10 more saves :

10 * 0.0032 * 100% = 3.2% (earning increases by 3.2%)

Having 100 more innings :

100 * 0.00089 * 100% = 8.9%

If ERA is reduced by 1.5 ; earning will increase by (0.0085*100)% * 1.5 = 1.275%

B.) At 5% level of confidence :

α = 1.64

Years = 0.052/0.026=2

Inning = 0.00089/0.00020 = 4.45

Saves = 0.0032/0.0018 = 1.78

ERA = 0.0085/0.0168 = 0.51

Years, Inning and saves are statistically significant as they are greater than α ; As for ERA, it is not statistically significant (0.51 < 1.64)

You might be interested in
PLEASE PLEASE PLEASE<br> HELP ME!!!!!
Bond [772]

Answer:

3 adjacent

4. complementary

4 0
2 years ago
What is the maximum, minimum, Midline, amplitude and period of the graph
Basile [38]

Answer:

0,-1 0,-7

Step-by-step explanation:

6 0
2 years ago
Read 2 more answers
Use these clues to guess the mystery number. It is an odd number. It is greater than 142. It is less than 156. Rounded to the ne
Marianna [84]
Could be 154. 154 rounded to nearest ten= 150, rounded to nearest 100= 200
8 0
3 years ago
Read 2 more answers
PLS HELP ME
s2008m [1.1K]
The students on the right hand side had better overall results

There were less people on the left hand side of the room this affects the average even with the right hand side having two zeros, another thing which the left hand side didn’t have.

Hope I helped
3 0
1 year ago
John is traveling at 48 miles per hour and his distance can be written as d = 48t.
MakcuM [25]
240 miles
d=48(5) which equals 240
3 0
1 year ago
Other questions:
  • If ( f ∘ g)(x) = x2 - 6x + 8 and g(x) = x - 3, what is f(x)?
    15·1 answer
  • If two angles are complementary, which is the sum of their measurements?
    10·2 answers
  • I have a quiz on this tomorrow and i'm completely lost someone please help
    8·1 answer
  • What is the effect on the graph of the function f(x) = 2when f(x) is replaced with f(2/3x)?
    15·1 answer
  • Jane multiplies her number by three and subtracts 2.
    15·1 answer
  • Find the length of side a.<br> 15<br> 9<br> O A. 6<br> B. V 306<br> C. 12<br> D. 144
    11·2 answers
  • I need the reasons for this
    11·1 answer
  • Yeah, im clueless please help;-;
    5·1 answer
  • 8.43 divided by 12.654
    7·1 answer
  • Find the length of line segment KH if K(-1,2) and H(3,5). Round to the nearest tenth if needed
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!