Set 1 ISS 328 Michigan State University 1. Summer, 2015 L. Martin In their paper on peer effect in golf, Guryan, Kroft and Nodowidigdo investigate whether a player's score is lower if his playing partners are better golfers. Ability is measured by the average score per round over the season. Other influences on score are controlled using fixed effects. (Don't worry about this term - we will study it later.) Standard errors appear in parentheses below the coefficient estimate. The data involve scores from rounds played during several Professional Golf Association seasons. The paper is here: http://www.nber.org/papers/w13422.pdf You should not have to read the paper to answer this question. Consider this regression table from their paper. 1. Consider the first regression (left hand column). a. What is the dependent variable? - The golf score for the round b. What is the hypothesis being tested? - The ability of peers will effect performance o Own ability variable _____________ c. Which variable captures the hypothesis? - The average partners ability variable d. What is its coefficient? - The coefficient is 0.678 e. What does the coefficient mean? - There is human error in terms of measurement, but speaking of conditional reliability ratio, the value is large in magnitude. Is it significant at the 5% level? - It is not statistically significant at 5% g. What does this mean? - The parameter estimation does not lie in within the interval of the actual parameter estimates. f. h. Would you say that there is good evidence for peer effects? Explain. - Yes, the relationship between the dependent variable and independent variable is good enough evidence. i. Is the coefficient on own ability significant at the 5% level? - Yes, the coefficient on own ability is significant at 5% level. j. What type of variable is this? - Independent variable k. What does this estimate mean? j. What type of variable is this? ______________ k. What does this estimate mean (in English)? 2. Bobo, who is from Ghana, likes to wrestle. He wrestles on Tuesday and Friday. (By the way, his name means, \"born on Tuesday.\") The following table gives his results this year on the two days. a. Tuesday Thursday Win 20 15 Lose 8 13 He wants to know if he wrestles better on Tuesday. What statistical test should he use? _____________ b. What is the hypothesis to be tested? c. What is the null hypothesis? d. He performs the test that you recommend and finds a p-value = 0.167. Interpret this number. e. What is learned from this test? Explain. 3. Fred, like all normal people, loves to bowl. He never has an open frame. That is, each frame is either a strike (x) or a spare (/). Strikes are better. Here is his data. xxx/xxx/////xxxx////x a. What is the conditional probability of a strike in the frame following a strike? __________ b. How many runs for Fred? c. The runs test for this data gives the following. __________ Expected Number of Runs: 11.5; sd: 2.2279 z-value= -2.0091 Explain the results of this test. Does it show evidence of the hot hand? d. Draw a nice picture of the distribution of runs and show the actual value, the z-statistic