Question

Sport Economists often desire to explore the causes of phenomenon that are observed in the various aspects of sport. To this, they often turn to econometric techniques that are designed to estimate these statistical relationships and they utilize prescribed model evaluation statistics to ensure the estimated relationships are statistically significant.

a. Using your own specific example, provide an explanation from sport that can be analysed using regression analysis

Answer 1

Regression analysis can be used to predict if a certain player will be a draft pick or not, in the NBA.

Data from NCAA research regarding a player aong with the players' physical attributes are considered as the independent variable, whereas the likelihood of the player being a draft choice was the dependent variable.

X = a ( height of the player ) + b ( weight of the player ) + c ( college of the player ) d ( shooting percentage ) + e ( free throw rate ) + f ( 3 point percentage ) + G

X = probability of the player being an NBA draft pick

a,b,c,d,e,f ----> regression coefficient of the respective independent variable

G ----> constant

Using the above parameters, a regression equation can me modelled. Based on the values of various coefficients identified, the relative importance of the indenpendent variables in determining whether the player is a draft pick can be determined. ( For example, if physical attributes are more important when compared to the college from the player graduated or the shooting percentage )