The following table lists Major League Baseballs (MLBs) leading pitchers, their earned run average (ERA), and their

The following table lists Major League Baseball’s (MLB’s) leading pitchers, their earned run average (ERA), and their salary (in millions of dollars) for 2008. The entire data set, labeled MLB_Pitchers, can be found on the text website.

a. Use Excel to estimate the model: Salary = β0 + β1ERA + and interpret the coefficient of ERA.
b. Use the estimated model to predict salary for each player, given his ERA. For example, use the sample regression equation to predict the salary for J. Santana with ERA = 2.53.
c. Derive the corresponding residuals and explain why the residuals might be sohigh.

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J. Santana C. Lee T. Lincecum C. Sabathia R. Halladay J. Peavy D. Matsuzaka R. Dempster B. Sheets C. Hamels ERA 2.53 2.54 2.62 2.70 2.78 2.85 2.90 2.96 3.09 3.09 Salary (in $ millions) 17.0 4.0 0.4 11.0 10.0 6.5 8.3 7.3 12.1 0.5