Home Court Consider data on every game played by the Brooklyn Nets in 2014 (82 g

Question

Home Court Consider data on every game played by the Brooklyn Nets in 2014 (82 games) that includes the variables * margin - the Net's margin of victory (number of points the Nets scored minus the number of points their opponent scored) for game i, and . home - a dummy variable equal to 1 when the Nets are the home team (game was played in their home arena) and equal to 0 when they are the away team (game was played in the opponent's arena) I use the least-squares method to estimate the following regression model margin,- + home, + ei Below is the Stata output corresponding to the estimated regression line: margin = a bhome Linear regression Number of obs F (1, 80) Prob > F R-squared Root MSE 82 7.66 0.0070 0.0874 13.808 Robust Std. Err. margin Coef. P>tl [95% Conf. Interval] 8.439024 3.049595 5.219512 2.221983 2.770.007 2.35 0.021 2.370137 9.6414 home 14.50791 7976244 cons 10) What was the Nets' average margin of victory for games in 2014 when they were the home team? 11) What was the Nets' average margin of victory for games in 2014 when they were the away team? 12) Assuming that the Nets played half of their games at home and half away, which of the following conclusions can we make with certainty from the regression results? (check all that apply) a) The Nets average margin of victory for all games in 2014 was positive b) The Nets average margin of victory for all games in 2014 was negative c) The Nets won more games than they lost in 2014 d) The Nets lost more games than they won in 2014 e) None of the above

Explanation / Answer

a) Net margin = -5.219 +8.439 * home

Home=1

Net margin=-5.219 +8.439 *1=3.22

b) Net margin = -5.219

c) Net average margin of victory for all gams in 2014 was negative is the only things that can be said with certainity

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