Solve simple regression problem

[939]

Homework Statement

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?

Homework Equations

Salary = 1 500 000 + 0.9log(points), n = 150, r^2 = 0.14

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.

 

[Greg Bernhardt]

Thanks for the post! Sorry you aren't generating responses at the moment. Do you have any further information, come to any new conclusions or is it possible to reword the post?