Data for the top 100 money winners on the Professional Golf Association (PGA) tour were used to estimate the following equation:

where Y = dollars won on the PGA tour; D = average length of drives from the tee, yards; A = driving accuracy (percent of drives landing in fairway); G = percent of greens that were reached in par minus two strokes; P = percent of those greens reached in par minus two that required only one put; S = percent of times player made par after hitting into sand; the standard errors are in parentheses; the t values are in brackets; and R² = 0.468.

a. Which, if any, of the estimated coefficients of the five explanatory variables are statistically significant at the 5 percent level?

b. Which, if any, of the estimated coefficients of the five explanatory variables have plausible signs?

c. Does the fact that the estimated coefficient of P is larger than the estimated coefficient of D imply that, other things being equal, a player who is a good putter wins more money than a person who hits long drives?

d. Does the fact that the t value for S is larger than the t value for G imply that, other things being equal, a golfer who plays well out of the sand wins more money than a player who does well reaching the green in par minus 2?

Transcribed Image Text:

Y=-8,023,111 +15,992D+ 12,003A +27,084G+ 91,306P + 11,357S (1,103,835) (3,547) (6,571) (10,078) (19,649) (3,705) [7.26] [4.51] [1.83] [2.69] [4.65] [3.07]