Introductory Econometrics: A Modern Approach 6th Edition by Jeffrey M Wooldridge

Exercise 5

Use the data in NBASAL.RAW for this exercise.

(i) Estimate a linear regression model relating points per game to experience in the league and position (guard, forward, or center). Include experience in quadratic form and use centers as the base group. Report the results in the usual form.(ii) Why do you not include all three position dummy variables in part (i)?

(iii) Holding experience fixed, does a guard score more than a center? How much more? Is the difference statistically significant?

(iv) Now, add marital status to the equation. Holding position and experience fixed, are married players more productive (based on points per game)?

(v) Add interactions of marital status with both experience variables. In this expanded model, is there strong evidence that marital status affects points per game?

(vi) Estimate the model from part (iv) but use assists per game as the dependent variable. Are there any notable differences from part (iv)? Discuss.

Step 1 of 8

(i)

Estimating the linear regression model relating points per game to experience in the league and position (guard, forward and center) such that experience is included as quadratic form and centers is used as the base group, the result is:

The usual form of the model is given by: