basicmicroF11sports

# basicmicroF11sports - 1. 2. 3. B uilding and Test ing a T...

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Building and Testing a Theory Steps 1-3 1. Decide on what it is you want to explain or predict. 2. I dentify the variables that you believe are important to what you want to explain or predict. 3. State the assumptions of the theory. a) Weak vs. Strong Assumptions b) Ceteris Paribus - A Latin term meaning “all things held constant.” c) Econometrics - the social science in which the tools of economic theory, mathematics,and statistical inference are applied to the analysis of economic phenomena.

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Wins and Offensive Rebounds 0.0 0.2 0.4 0.6 0.8 1.0 8 10 12 14 16 18 20 Offensive Rebounds per game Winning Percentage
Looking at Missed Field Goal Attempts 8 10 12 14 16 18 20 35 40 45 50 55 Missed Field Goal Attempts Per Game Offensive Rebounds Per Game . 0 0 . 0 2 . 0 4 . 0 6 . 0 8 . 1 0 35 40 45 50 55 Missed Field Goals Per Game Winnning Percentage

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Building and Testing a Theory Steps 4-7 4. State the hypothesis 1. Test the theory by comparing its predictions against real-world events. 2. I f the evidence supports the theory, then no further actions is necessary. 3. I f the evidence rejects the theory, then a. conclude the theory is incorrect. b. conclude the data is inadequate.
Maximizing the Value of the Firm 0 The value of the firm is impacted by 0 Total Revenue. ... which is a function of team quality, market size, stadium etc. .... 0 Total Cost . ... which is a function of the player salaries, administrative expenses, stadium expenses. ....

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Steps in the Decision Process 1. Economic relations must be expressed in
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## This note was uploaded on 09/21/2011 for the course ECON 33974 taught by Professor Barbaraross during the Spring '09 term at Hawaii.

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basicmicroF11sports - 1. 2. 3. B uilding and Test ing a T...

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