an you answer this for me? Choose any thing as a research question that you want
ID: 1167594 • Letter: A
Question
an you answer this for me? Choose any thing as a research question that you want? I just need this done for me!! I need all 3 parts answered please!
1. Select any research idea that you are interested. Write down a research question. For example, I am interested in the Salary of baseball players. My research question is "Does age determines wages of baseball players?"
2. Write down your research question in a functional form that can be tested using the Regression Analysis. Your model must include an endogenous variable and at least three exogenous variables. One of the exogenous variables should be the "main interest" variable. Explain why For example, my endogenous variable is "wages" and my main-interest exogenous variable is "players' age (age)". However, I know that there are other factors that can affect players' salary such as performance (Perf) , market size of the team that they are playing for (Pop)etc. My model will look like
Wages = b0 + b1Age + b2Perf + b3Pop
3. Provide "expected sign" for the coefficient b1, b2, b3 with the reason behind your believe. For example, my expected sign for b1 is positive because older players have more experience and should get more money. The expected sign for b2 should be positive because better performance should lead to better compensation. For b3, again the expected sign should be positive because the team that locates in a bigger city should have more fans and more money to pay its players.
Explanation / Answer
Here, I'm taking the example you have in mind (Salary of players as a dependent variable of age & other indpendent factors).
(1) Research question is:
"Is Age a determinant of salary paid to Baseball player?"
In terms of hypothesis, we write
Null Hypothesis, H0: Age is a determinant of players' salaries.
Alternate hypothesis, H1: Age is not a determinant of players' salaries.
(2)
Let the endogenous variable be: Salary.
Exogeneous variables I've chosen are: Age (in years), Performance (Number of goals), Team Size (Population), Experience in playing (in years), Salary of player in rival Team (Rival Salary).
Then, the regression equation will be:
Salary = a0 + (a1 x Age) + (a2 x Number of Goals) + (a3 x Population) + (a4 x Years of experience) + (a5 x Rival Salary) + e
Where e: Error term
(3) Expected signs of coefficients.
(i) a0 should be positive. The base salary, irrespective of any other factors, should be greater than zero (since salary can never be negative, and a0 measures the autonomous component of the model, that is, the salary if all other exogeneous variables are set to 0).
(ii) a1: Expected to be positive, since older players normally have more experience and can fetch more salary.
(iii) a2: Expected to be positive, since the higher the number of goals by a player, the more valuable he is for the team and salary has to be higher to retain him in the team.
(iv) a3: Expected to be positive. A larger team size will strengthen the team and higher salary can be paid out of higher sponsorship.
(v) a4: Expected to be positive. More experienced players get higher salary.
[Note here: Age & Experience are correlated! Higher age implies higher experience, but higher experience may not indicate higher age (in case player started playing at an above-average age)]
(vi) a5: Expected to be positive. If the rival team is offering a higher salary, this team also has to offer higher salary to retain players in the team, otherwise they will leave & join rivals.
(vii) Error term: It can be positive or negative and depends on the actual data versus the regression output, and cannot be predicted.
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