Classic “Oakland A’s” Case Study in Statistics – Linear Regressions with Dummy Variables

I have attached the problem – reading the case study isn’t necessary – only a long reading about the Oakland A’s and the decisions they made. This problem is really about doing the linear regressions in Excel with the data given and making conclusions based on those regressions.

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I need this problem done by1pm tomorrow (Wednesday, 10/2) central standard time.

 

PLEASE NOTE: The Excel regression tables must be included. This is a multi-variable regression model, so plotting each variable separately in charts is not the solution. I need the regression analysis which comes in the data analysis toolpak in Excel.

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Problem 3A

Read the “Oakland As (A)” case in the course pack. The data is available in the course website. The tab in the spreadsheet labeled Full Data Set contains the data in Exhibit 1 of the case while the tab labeled Nobel Data contains the attendance figures for the games Nobel pitched in and those he did not pitch in.

(a) Compute the descriptive statistics for the attendance at the games Nobel pitched in and those he did not pitch in. What is the difference in the average attendance for these two sets of games? Does this provide meaningful evidence that Nobel should be paid more because attendance was higher in the games he pitched in?

(b) Plot Ticket against Time (i.e. create a time series plot of Ticket). Do you see any patterns in the data?

(c) Run the regression

Tickett = β0 + β1*Nobelt + εt

where Nobel is a dummy variable that takes the value 1 when Nobel starts on day t.

What are the estimates of β0 and β1? How do these relate to the average attendance figures computed in part (a)?

(d) Do the residuals from the regression in part (c) appear to be independent? Why or why not? If they are not independent, what factors might explain the pattern?

(e) Run the regression

Tickett = β0 + β1Post + β2GBt + β3Tempt + β4Prect + β5TOGt + β6TVt + +β7Promot + β8Nobelt + β9Yankst + β10Weekendt + β11ODt + β12DHt + εt

Do the residuals from this regression appear to be independent? (It is a close call but assume they are independent.) Why would these residuals be independent while the residuals from the model in part (c) are dependent?

(f) What evidence is there about Nobel pitching in a game being related to the attendance at the game? Do you have more confidence in drawing a conclusion from the model in part (c) or the model in part (e) to answer this question? Why?

(g) Do you think Nobel’s agent has a legitimate case that Nobel should be paid more because he brings fans to the games?

Problem 3B

Read the “Oakland As (B)” case in the course packet. The data file is attached to this problem.

(a) Run a regression of Attendance against Wins. What is the interpretation of the coefficient associated with Wins? What is the interpretation of R2 in this regression? What is the practical problem associated with using this model to forecast Attendance for the next season (i.e. to forecast attendance in the 1981 season)?

(b) Now run a regression of Attendance against Roddey’s forecast of the number of wins for that season. Why is the R2 value obtained from this regression so much lower than the R2 obtained from the regression in part (a)?

(c) Why is it more appropriate to use the model in part (b) for forecasting Attendance than the model in part (a)?

(d) Before the 1981 season starts Roddey forecasts 95 wins for the season. Using the model from part (b), what is the prediction for attendance in the 1981 season? What is the standard deviation associated with the prediction?

(e) Using the prediction and standard deviation for the prediction from the model in part (b), what is the probability associated with a bonus to Nobel of $0, $50,000, $100,000 and $150,000? What is the mean of this distribution?

(e) Using the probability distribution from part (d), what is the expected cost if the lump-sum incentive plan is used?

2

>Full Data Set

1

4

2 5 1 4

0 2 0 0 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0

2

2 3 1 5

0 2 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0

3

2 7 1 6

0 1 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0

4

00

2 5 1 7

0 1 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0

5

1 7 2 1 60 0 2 0 1 1 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0

6

0

1 6 1 2 60 0 2 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0

7

1 4 1 3

0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0

8

3 3 1 5

0 2 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0

9

9

3 2 1 6

0 1 1 0 1 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0

10

3 1 0 7 57 1 1 1 0 0 0 1 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0

11

5 1 0 5 57 0 2 0 0 0 0 1 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0

12

5 1 0 6 59 0 1 1 0 0 0 1 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0

13

5 1 0 7 58 0 1 0 0 1 0 1 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0

14

05

11 1 0 1 60 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0

15

2

11 1 0 2 60 0 2 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0

11 1 0 3 60 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0

17

29

7 1 0 6

1 1 0 0 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0

18

7 1 0 7 57 0 1 0 0 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0

41

12 4 2 5

0 2 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0

61

12 3 2 6 55 0 1 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0

9

12 5 3 7 57 0 1 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0

13 4 2 1 58 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

1
23

88

13 4 3 2 58 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1

24

94

13 3 2 3 59 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1

9 3 6 5 59 0 2 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0

26

9 3 6 6 61 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0

27

9 3 7 7 63 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0

10 3 7 1 61 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0

29

10 3 7 2 59 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0

10 3 7 3 60 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0

31

4 3 7 5 60 0 2 0 0 0 1 1 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0

4 3 7 6 63 0 1 0 0 1 1 1 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0

294

4 3 8 7 64 0 1 0 1 0 1 1 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0

6 3 9 1 62 0 2 0 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0

99

6 4 10 2 62 0 2 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0

36

6 4 11 3 63 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0

8 4 11 5

0 2 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0

38

8 4 12 6 69 0 1 1 0 0 0 1 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0

39

8 4 12 7 63 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0

40

3 5 12 4 66 0 2 0 0 1 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0

41

3 5 12 5 62 0 2 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0

13

5 5 13 3 65 0 2 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0

5 3 12 4 65 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0

44

11 3 12 5 60 1 2 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0

11 3 11 6 65 0 1 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0

46

11 3 11 7 65 0 1 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0

47

7 3 12 1 65 0 2 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0

48

7 3 12 2 63 0 2 0 0 1 0 0 0 1 0 0 0 0 0 0 1 0 0 0 0 0 0

49

7 3 12 3 64 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0

50

41

2 2 12 1 65 0 2 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0

2 2 12 2 67 0 2 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0

52

2 2 12 3 63 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0

53

1 2 13 5 62 0 2 0 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0

54

1 2 12 6 63 0 1 0 1 1 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0

55

1 2 13 7 63 0 1 0 0 0 0 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0

56

9 2 15 2 67 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0

57

69

9 2 15 3 65 0 2 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0

58

9 2 15 4 61 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0

59

10 2 15 5 62 0 2 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0

60

10 2 16 6 64 0 1 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0

61

10 2 17 7 63 0 1 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0

62

4 2 17 1 62 0 2 0 0 1 1 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0

63

4 2 17 2 62 0 2 0 1 0 1 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0

64

12 3 19 1 65 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0

65

12 3 18 2 63 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0

66

12 2 17 3 64 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0

67

13 2 17 5 62 0 2 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1

68

13 2 16 6 61 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1

69

13 2 17 7 63 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1

70

8 2 15 2 70 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0

8 2 14 3 69 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0

8 2 14 4 64 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0

73

6 2 14 5 64 0 2 0 0 1 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0

74

6 2 13 6 62 0 1 0 0 0 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0

75

6 2 12 7 65 0 1 0 1 0 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0

NUMBER TICKET OPP POS GB DOW TEMP PREC TOG TV PROMO NOBEL YANKS WKEND OD DH 0 1 O2 O

3 O

4 O

5 O

6 O

7 O

8 O

9 O

10 O

11 O

12 O

13
24 15 57
57

29 66
5783 64
63 62
52 60
2

14
24

18 61
65 70 58
5

23 59
9014
86

36
7062
182

17
1

26
24

27
16 47 31
49 55
78

39
19 41 56
20 50
21 10

54
22 21882
44
40
25 15947
12990
187

53
28 20162
38 73
30 5628
477

68
32 27312
33 46
34 17666
35 48
6856
37 8482 69
5204
7369
11337
7696
42 74
43 6370
5949
45 6506
10606
14588
8645
4765
1

67
51 4651
6697
6283
13629
13062
11934
75
10947
11532
10578
18745
47946
32905
9731
2443
3598
17440
11253
10756
3069
71 3836
72 3180
5099
4581
10662

Nobel Data

5783

15947

27312

8482 9014
11337

5949 7062
8645

13629

47946

3598

5099

21882
12990
20162
5628
17666
6856
5204
7369
7696
6370
6506
10606
14588
4765
4651
6697
6283
13062
11934
10947
11532
10578
18745
32905
9731
2443
17440
11253
10756
3069
3836
3180
4581
10662
TICKET when Nobel pitches TICKET when Nobel does not pitch
5260 24415
5239 5729
18217
7839 6300
10549 2140
2418
6570
8636
12605
24272
7569 4731
4929
4141
5061
4488
4094
18753
3873
47768
46294
4899
7413
16741

Nobel Data

1

NOBEL
Residuals
NOBEL Residual Plot
1

1 1

#REF!
#REF!
Game
Residual
Residuals vs. Game

Sheet1

7466

93 89

90

91

593

88

12

63 70

69

54

83 80

Year Attendance Wins Forecasted Wins
1968 83 82 79
19

69 778232 88 90
19

70 778355 89 91
1971 9149

93 101 106
1972 962931
1973 10007

63 94 84
1974 845693 92
1975 1075518 98
1976 7

80 87
1977 49

54
1978 526412 67
1979 306763 65
1980 843319

Sheet2

Sheet3

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