BNAD 277 Case 15.

1. Equations and coefficients

a. Estimated Equation: Salary-hat = 32.787 -0.826PCT + 0.785TD + 0.386AGE
b. Coefficients of Each Estimated Slope:
i. For every increase in 1% pass completion, salary decreases by $826000,
holding all other explanatory variables constant.
ii. For every increase in touchdown passes thrown, salary increases by
$785000, holding all other explanatory variables constant.
iii. For every increase in 1 year of age, salary increases by $386000, holding
all other explanatory variables constant
2. State the Null and Alternative Hypothesis for the test each Beta slope
H0: PCT = 0, HA: PCT 0
H0: TD = 0, HA: TD 0
H0: AGE = 0, HA: AGE 0

a. What is conclusion for each individual test of significance at the 5% level? Why?
i. Cannot reject H0 for PCT variable because p-value is greater than 5%.
This means that this variable is not significant.
ii. Reject H0 for TD variable because p-value is less than 5%. This means
that this variable is significant.
iii. Cannot reject H0 for AGE variable because p-value is greater than 5%.
This means that this variable is not significant.
3. State the Null and Alternative Hypothesis for the test of joint significance
H0: J = 0, HA: J 0
a. This conclusion for joint significance at the 5% level.
i. We can reject the H0 for joint significance because the Significance of F is
0.2624 % which is less than 5%
4. Excel Regression Output

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.626957
R Square 0.393075
Adjusted R
Square 0.328048
Standard
Error 5.498945
Observations 32
ANOVA
Significance
df SS MS F F
Regression 3 548.3496 182.7832 6.044739 0.002624
Residual 28 846.6751 30.2384
Total 31 1395.025

Standard Upper Lower Upper

Coefficients Error t Stat P-value Lower 95% 95% 95.0% 95.0%
Intercept 32.78668 20.731 1.581529 0.124989 -9.67884 75.2522 -9.67884 75.2522
PCT -0.82647 0.438338 -1.88547 0.069782 -1.72437 0.071421 -1.72437 0.071421
TD 0.784974 0.249271 3.149074 0.003872 0.274365 1.295583 0.274365 1.295583
Age 0.386183 0.253262 1.524836 0.138517 -0.1326 0.904968 -0.1326 0.904968