1:Based on the information provided we can conclude that

A. Being selected on the All – Star increases a player’s salary by $98,430, on average, and this coefficient is significant at the 5 percent level.

B. Being selected on the All – Star increases a player’s salary by $71.928 + 566,400, and the coefficient on All - Star is significant at the 5 percent level.

C, Scoring an additional goal increases a player’s salary by $71,928, on average, and the coefficient on Goals is not significant at the 10 percent level.

D. An additional assist increases a player’s salary by 20,403 on average, and the coefficient on Assists is significant at the 5 percent level.

Q2. Based on the value of the coefficient of determination, the model

A. explains 5 percent of the variation of the salary variable around its mean.

B.is not a good fit to the data.

C. does not have much explanatory power, given the significant coefficients.

D. explains 95 percent of the variation of the salary variable.

Q3. The variable All-Star

A.is statistically significant.

B.is the most important variable in the regression model.

C.is considered a dummy variable.

D. explains all the variation in player salaries.

 

where Salary is NHL Salary in dollars, Goals is the number of career goals, Assists are the number of career assists, and All-Star = 1 if the player was selected as an all-star in the previous season; 0 otherwise.

Transcribed Image Text:

Salary = 566,400+71,928Goals t-stat (3.45) (2.96) R² = 0.95 +20,403 Assists +98,430 All-Star (3.50) (1.30) Salary = 566,400+71,928Goals t-stat (3.45) (2.96) R² = 0.95 +20,403 Assists +98,430 All-Star (3.50) (1.30)

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Q1 Answer B Being selected on the AllS... View the full answer