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PROCEDURE:
Technical Conditions:
Ho: B=0 (There is no association between PER and salary for NBA players).
Ha: B>0 (There is a positive linear association 0<B<1 between PER and
salary for NBA players).
What we are planning to do is find every NBA player in our samples PER and
salary ($/1,000,000).
We also will find critical values such as the t*, p-value, and a 95% Confidence
Interval to test our null and actual hypothesis, by using STAT --- Tests ---
LineRegTTest
RAW DATA:
We put this in the Ti-84 in two lists, and plotted the graph as a scatterplot.
Then we found the slope of this scatterplot through the LinReg (a+bx) shown
above.
r ((n-2)/ (1-r^2)
SE(b) = .63334975/6.43740488 = .
09838588
P-value is shown to be .
CI 95% : b +- t*(SE(b))
STATISTICAL ANALYSIS:
All the data is calculated above. We found a linear relationship between PER
and Salary in the NBA.
The scatterplot shown above for the plot shows a moderately strong,
positive, linear relationship between PER and salary. The correlation
coefficient r is found to be .545151, which is a moderately strong indicator in
the positive direction for PER vs. salary.
Also based on the given NBA averages of PER= 15.00 and salary=
$5,000,000, our numbers are fairly close, as our averages are 15.5179 and
$6,845,000. Since this is a random sample of NBA players, not taking into
account 350 players, there will be clear variability in raw numbers.
CONCLUSION:
Based on the complete data and statistical analysis shown above, we stated
that we reject the null hypothesis and concluded that there is a positive,
linear association between Player Efficiency Rating and NBA Salary for NBA
players. We found that for every 1 point increase in PER, the salary of a
player would increase by $633,497 for the 2015-2016 season. There was no
pattern to the residual plot, so we also saw that there was evidence that the
pattern would be linear, and not any other form for the relationship. So we
were correct in our earlier assumption that harder work and effort, combined
with higher number of strengths and results would result in a higher pay day
for NBA players.