# EconHM15 - Question #1 Look at the example on page 71...

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Question #1 Look at the example on page 71 (slide 28) of the course packet, about Armani Pizza. The coefficient of determination is 0.928074693 , the standard error of the estimate is 28.13339035 , the estimated slope coefficient is 10.89424753 , the corresponding measured test statistic of a two-tail test on the significance of the slope parameter is 10.16004421 . After looking at the p-value corresponding to this test statistic, your conclusion is that the slope is different than zero, the model is useful. Question #2 Most basketball fans wanted the 1998 NBA lockout to end soon, and so did the players and the owners of the teams -- so why wasn't it over sooner? You were hired as a statistician by HOOPS (Helping Out Organizers and Players of Sports) Inc. to sort out if there was any reason for that strike to go on. You were given a data set on the average salaries of some teams and the profits made by the teams in the 1997 season (both in millions of dollars). Run a regression of average salaries (the dependent variable) on profits (the independent variable) to see whether players were really justified in continuing with the lockout of the NBA

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## This note was uploaded on 02/11/2010 for the course ECON 203 taught by Professor Petry during the Spring '09 term at University of Illinois, Urbana Champaign.

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EconHM15 - Question #1 Look at the example on page 71...

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