Please do whatever you can do

1 1 .1 1 1 1 2 . 1 . 3 . 1 . 4 . 1 . 5 1 16 1 7 . 1 . 8 . 1 . 9 . 1 10. 1 . 11 . 1 12 1 . 13 1 . 14 1 15 . 1 76 Please use the NBASAL database to answer this exercise. This database contains a sample of 269 NBA players for whom you observe, among other things, their annual salary in thousands of USD (wage) and the number of minutes played during the year (minutes). For all the following questions, assume that the assumptions of the simple linear regression model are satisfied. (a) [2 points] Estimate the following model by the ordinary least squares method: wagei = Bo + Biminutesi + ui. Report and interpret the values of the estimates Bo and B1. Also interpret the values of R2 (b) [2 points] Now estimate the model in (a) after replacing minutes with a variable measuring the number of hours played during the year. Using a rigorous mathematical argument, explain the similarities and/or differences between the new estimates of the slope and intercept compared to those obtained in (a). (c) [2 points] Compare the R2 obtained before and after the unit change. Support your comparison with a rigorous mathematical argument. (d) [2 points] Propose and estimate a model in which the estimated slope measures the percentage change in annual salary associated with a one percent increase in the number of minutes played during the year. According to your estimates, what is the change in annual salary pr'edite for a 10 percent increase in the number of minutes played