E3 Consider the following model that explains major league cricket players' salaries. Using the appropriate data set you have estimated the following model: where salary = total salaries in 1993; years = total years in the league, gamesyr= average games played per year, bavg = career batting average, hrunsyr = total home runs per year, rbisyr = runs batted per year. Suppose, you want to test the hypothesis that once years in the league and games per year have been controlled, the statistics measuring players' performance will have no effect on their salaries. i) State the null and alternative hypotheses for this problem. ii) Find the F-statistic (F-ratio) for this test. iii) Test the null hypothesis that productivity as measured by cricket game statistics has no effect on player's salaries at the 1% or 5% level of significance. iv) What are the differences between 't' and 'F' tests?
E3
Consider the following model that explains major league cricket players' salaries.
Using the appropriate data set you have estimated the following model:
where salary = total salaries in 1993; years = total years in the league, gamesyr= average games played per year, bavg = career batting average, hrunsyr = total home runs per year, rbisyr = runs batted per year. Suppose, you want to test the hypothesis that once years in the league and games per year have been controlled, the statistics measuring players' performance will have no effect on their salaries.
i) State the null and alternative hypotheses for this problem.
ii) Find the F-statistic (F-ratio) for this test.
iii) Test the null hypothesis that productivity as measured by cricket game statistics has no effect on player's salaries at the 1% or 5% level of significance.
iv) What are the differences between 't' and 'F' tests?
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