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I am not using the answers as my own. I need help and guiadance with the answer. 2. The R data set at http://fsu.schmert.net/eco4421/data/MLB-attendance.RData has

I am not using the answers as my own. I need help and guiadance with the answer.

2. The R data set at http://fsu.schmert.net/eco4421/data/MLB-attendance.RData has information about Major League baseball attendance for 32 teams over 1970-2000. Each of the 838 observations in the dataset represents one team in a single year -- for example,

i city nickname season home_attend wins runs_scored
1 Anaheim Angels 1997

1767330

84 829
2 Anaheim Angels 1998

2519107

85 787
3 Anaheim Angels 1999

2253123

70 711
4 Anaheim Angels 2000

2066977

82 864
5 Arizona Diamondbacks 1998

3600412

65 665
... ... ... ... ... ... ...

(a) Make a scatterplot with runs_scored on the horizontal axis and home_attend on the vertical axis.

(b) Estimate a regression in which home_attend is the dependent variable and runs_scored is the independent variable. Report the results and interpret the coefficient values.

(c) Use the regression results to construct an 80% confidence interval for the effect of one more run per season on annual home attendance. [You can just do this calculation on a calculator. Use the results from the R printout and show how you calculated the interval.]

(d) How large does the sample estimate of _ have to be to reject

0:_=0in favor of:_>0 at a significance level of =.05. [Hint: this will depend on the standard error of the slope estimate, which you can see with the summary command.]

(e) Calculate the power of the test in part (d) for three cases

  • _=100
  • _=400
  • _=1000

[Hint1: the power of the test is the probability that a sample will have a ^_ value positive enough to reject 0.] [Hint2: in R, you can calculate the probability that a z-variable is larger than X with the command 1-pnorm(X). For example, 1-pnorm(1) is Pr(Z>1), 1-pnorm(2.3) is Pr(Z>2.3), and so on.]

(f) Explain, in simple English, what the calculations in part (e) mean

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