The New York Times (2/5/90) reported three-point shooting performance for the top 10 three-point shooters in the
Question:
The New York Times (2/5/90) reported three-point shooting performance for the top 10 three-point shooters in the NBA. The following table summarizes these data:
For a given player, the outcome of a particular shot can be modeled as a Bernoulli (zero-one) variable: if Yi is the outcome of shot i, then Yi = 1 if the shot is made, and Yi = 0 if the shot is missed. Let θ denote the probability of making any particular three-point shot attempt. The natural estimator of θ is Y̅ = FGM/FGA.
(i) Estimate u for Mark Price.
(ii) Find the standard deviation of the estimator Y̅ in terms of u and the number of shot attempts, n.
(iii) The asymptotic distribution of (Y̅ - θ)/se(Y̅) is standard normal, where se(Y̅) = √Y̅(1 – Y̅)/n.
Use this fact to test H0: θ = .5 against H1: θ < .5 for Mark Price. Use a 1% significance level.
Step by Step Answer:
Introductory Econometrics A Modern Approach
ISBN: 9781337558860
7th Edition
Authors: Jeffrey Wooldridge