Question

In: Statistics and Probability

14. A study has shown that a good model for the relationship between X and Y...

14. A study has shown that a good model for the relationship between X and Y , the first and second year batting averages of a randomly chosen major league baseball player, is given by the equation Y = .159 + .4X + e, where e is a normal random variable with mean 0. That is, the model is a simple linear regression with a regression toward the mean.

(a) If a player’s batting average is .200 in his first year, what would you predict for the second year?

(b) If a player’s batting average is .265 in his first year, what would you predict for the second year?

(c) If a player’s batting average is .310 in his first year, what would you predict for the second year?

Solutions

Expert Solution

Regression equation is

E(Y) = 0.159 + 0.4 *E(x)             (E(e) = 0)

a) For x = 0.200

E(Y) = 0.159 + 0.4 * 0.200

        = 0.159 + 0.08

       = 0.239

If a player's batting average is 0.200 in his first year, we can predict that his second year's average batting average is 0.239

b) For x = 0.265

E(Y) = 0.159 + 0.4 * 0.265

        = 0.159 + 0.106

       = 0.265

If a player's batting average is 0.200 in his first year, we can predict that his second year's average batting average is 0.265

c) For x = 0.310

E(Y) = 0.159 + 0.4 * 0.310

        = 0.159 + 0.124

       = 0.283

If a player's batting average is 0.200 in his first year, we can predict that his second year's average batting average is 0.283


Related Solutions

Find if there is a relationship between education (in years) X and income Y. x 4...
Find if there is a relationship between education (in years) X and income Y. x 4 6 8 11 12 14 16 17 20 y 6000 12000 14000 10000 17000 16000 13000 16000 19000 Make sure that THREE of your posts for the week are Statistical in nature AND a direct response to the problems given in the discussion
Calculate the covariance between variables X and Y. Is it a positive or negative relationship between...
Calculate the covariance between variables X and Y. Is it a positive or negative relationship between the two variables? b. Calculate correlation coefficient between X and Y. Is it a positive or negative relationship? Is it a strong linear, weak linear or nonlinear relationship between X and Y? c. Use the Y data to calculate mean, range, standard deviation and variance. d. Use the first Y value to calculate the Z-score. Is it an outlier? e. Calculate the 60th percentile...
A business person is trying to estimate the relationship between the price of good X and...
A business person is trying to estimate the relationship between the price of good X and the sales of good Z of certain groups of staples. Tests in similar cities throughout the country have yielded the data below: PRICE (X)                  SALES (Z)      $15                              3300 $20                              3900 $25                              4750 $30                              5500 $40                              6550 $50                              7250 A simple linear regression of a model SALES (Z) = b + b PRICE(X) Was run and the computer output is shown below: PRICE OF X...
a. Good X has a cross elasticity coefficient with good Y equal to 2.5 for good...
a. Good X has a cross elasticity coefficient with good Y equal to 2.5 for good Y. Is it likely that good X is peanut butter and good Y is jelly? Why or why not? b. Good Z has an income elasticity coefficient equal to 0.5. Is it likely that good Z is a new Ferrari? Explain. c. Give a definition for the Law of Increasing Costs. How does this law impact the opportunity cost of goods along a production...
The conclusion listed below is based on a relationship between X and Y that is completely...
The conclusion listed below is based on a relationship between X and Y that is completely spurious. Do the following: (i) Define and explain what spurious relationship means? (ii) Think up a plausible variable, Z, that defines a compositional difference across the values of X. (iii) Describe how Z creates the relationship between X and Y. Students who smoke (X) earn lower grades (Y) than students who do not smoke. Conclusion: Smoking causes poor grades.
A scientist is studying the relationship between x = inches of annual rainfall and y =...
A scientist is studying the relationship between x = inches of annual rainfall and y = inches of shoreline erosion. One study reported the following data. Use the following information to solve the problem by hand, then use SPSS output to verify your answers. . X         30        25        90        60        50        35       75        110      45        80 Y         0.3       0.2       5.0       3.0       2.0       0.5       4.0       6.0       1.5       4.0 a. What is the equation of the estimated regression line? = ______________ b....
2. Theory gives you the following relationship between variables x and y, y = β0 +...
2. Theory gives you the following relationship between variables x and y, y = β0 + β1x + u. You collect a sample of data on n = 4 sample members. The data are : {x1, y1} = {3, 8},{x2, y2} = {2, 7},{x3, y3} = {1, 6},{x4, y4} = {3, 4} a. State the minimization problem that you need to derive the OLS estimators b. Estimate the relationship between x and y using this sample. What is your estimate...
The utility that Jane receives by consuming good X and good Y is given by u(X,Y)...
The utility that Jane receives by consuming good X and good Y is given by u(X,Y) = XY. 5.1) Draw the indifference curve associated with a utility level of 12 and the indifference curve associated with the utility level of 36. 5.2) Suppose that X costs $1 per unit and Y $3 per unit. Jane has $12 to spend on X and Y. Graph the budget line that she faces. 5.3) Derive Jane’s demand functions. What is the utility-maximizing choice...
The utility that James receives by consuming good X and good Y is given by u(X,Y)...
The utility that James receives by consuming good X and good Y is given by u(X,Y) = XY. 5.1) Draw the indifference curve associated with a utility level of 12 and the indifference curve associated with the utility level of 36. 5.2) Suppose that X costs $1 per unit and Y $3 per unit. James has $12 to spend on X and Y. Graph the budget line that he faces. 5.3) Derive James' demand functions. What is the utility-maximizing choice...
The accompanying data resulted from a study of the relationship between y = brightness of finished...
The accompanying data resulted from a study of the relationship between y = brightness of finished paper and the independent variables x1 = hydrogen peroxide (% by weight), x2 = sodium hydroxide (% by weight), x3 = silicate (% by weight), and x4 = process temperature. x1 x2 x3 x4 y 0.2 0.2 1.5 145 83.9 0.4 0.2 1.5 145 84.9 0.2 0.4 1.5 145 83.4 0.4 0.4 1.5 145 84.2 0.2 0.2 3.5 145 83.8 0.4 0.2 3.5 145...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT