You are a big soccer fan and you decide to gather information on the goal differential (goals scored - goals allowed) for your favorite team in the Premier League during the last season. You find that the average goal differential for home games (games that take place on the team's own stadium) was 1.37 and the average goal differential for away games (games that take place on the opponent team's stadium) was 0.32. With the data you have, if you regress goal differential (call it variable G) on a dummy variable (call it variable D) that takes the value 1 if the game is a home game and takes the value zero if the game is an away game, and obtain Ĝi = Bo + B₁ Di, then, Bo will be equal to equal to and ₁ will be

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You are a big soccer fan and you decide to gather information
on the goal differential (goals scored - goals allowed) for your
favorite team in the Premier League during the last season.
You find that the average goal differential for home games
(games that take place on the team's own stadium) was 1.37
and the average goal differential for away games (games that
take place on the opponent team's stadium) was 0.32.
With the data you have, if you regress goal differential (call it
variable G) on a dummy variable (call it variable D) that takes
the value 1 if the game is a home game and takes the value
zero if the game is an away game, and obtain
Ĝi = Bo + B₁ D₁,
then, Bo will be equal to
equal to
and ₁ will be
Transcribed Image Text:You are a big soccer fan and you decide to gather information on the goal differential (goals scored - goals allowed) for your favorite team in the Premier League during the last season. You find that the average goal differential for home games (games that take place on the team's own stadium) was 1.37 and the average goal differential for away games (games that take place on the opponent team's stadium) was 0.32. With the data you have, if you regress goal differential (call it variable G) on a dummy variable (call it variable D) that takes the value 1 if the game is a home game and takes the value zero if the game is an away game, and obtain Ĝi = Bo + B₁ D₁, then, Bo will be equal to equal to and ₁ will be
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