1. The problem statement, all variables and given/known data Salaries of NBA players related to average points per game: Salary = 1 500 000 + 0.9log(points), n = 150, r^2 = 0.14 1) What is a bad players salary? 2) Interpret the coefficient in front of the aggressor 3) What would be the advantages of running it in log-log form? 2. Relevant equations Salary = 1 500 000 + 0.9log(points), n = 150, r^2 = 0.14 3. The attempt at a solution 1) Approx 1 500 000. The lower the average points, the closer the salary is to 1 500 000 2) It is the right sign, as an increase in points means an increase in salary. But it is too small; 3) The main advantage is that the coefficient would give the elasticity; the elasticity would be 0.9.