You Have Collected Data from Major League Baseball (MLB)to Find $\text {Summary of the Distribution of Winning Percentage, On Base plus}$

question 3

Essay

You have collected data from Major League Baseball (MLB)to find the determinants of
winning.You have a general idea that both good pitching and strong hitting are needed to do
well.However, you do not know how much each of these contributes separately.To
investigate this problem, you collect data for all MLB during 1999 season.Your strategy is to
first regress the winning percentage on pitching quality ("Team ERA"), second to regress the
same variable on some measure of hitting ("OPS - On-base Plus Slugging percentage"), and
third to regress the winning percentage on both. $\text {Summary of the Distribution of Winning Percentage, On Base plus}$
$\text {Slugging percentage, and Team Earned Run Average for MLB in 1999}$


$\text {The results are as follows:}$
$$\begin{aligned}\widehat{\text { Winpct }}= & 0.94-0.100 \times \text { teamera }, R^{2}=0.49, \text { SER }=0.06 . \\& (0.08)(0.017) \\\widehat{\text { Winpct }}= & -0.68+1.513 \times \text { ops }, R^{2}=0.45, \text { SER }=0.06 . \\& (0.17)(0.221)\end{aligned}$$
$$\begin{aligned}\widehat { \text { Winpct } } = & - 0.19 - 0.099 \times \text { teamera } + \\& ( 0.08 ) ( 0.008 ) \quad ( 0.126 )\end{aligned}$$ (a)Use the t-statistic to test for the statistical significance of the coefficient.

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Definitions:

Short-Term Profitability

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Interlocking Directorates

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Clayton Act

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Sherman Act

A foundational antitrust law in the United States designed to prevent monopolistic practices and promote competition.