Table 1: Minimum Pay for Years of Experience for 2017-2018 Season

National Football League (NFL)

Rank

Player

Contract length in years

Contract amount in $

1

Patric Mahomes

10

450,000,000

2

Deshaun Watson

4

156,000,000

3

Matt Ryan

5

150,000,000

4

Khakik Mack

6

141,000,000

5

Russel Wilson

4

140,000,000

6

Jimmy Garoppolo

5

137,500,000

7

Matthew Stafford

5

135,000,000

7

Aaron Donald

6

135,000,000

7

Joey Bosa

5

135,000,000

10

Aaron Rodgers

4

134,000,000

10

Jared Goff

4

134,000,000

12

Carson Wentz

4

128,000,000

13

Myles Garrett

4

125,000,000

13

Derek Carr

5

125,000,000

15

Ryan Tannehill

4

118,00,000

16

Von Miller

6

114,000,000

17

DeMarcus Lawrence

5

105,000,000

18

Frank Clark

5

104,000,000

19

Fletcher Cox

6

102,600,000

20

J.J Watt

6

100,000,000

21

Jalen Ramsey

5

100,000,000

21

Amari Cooper

5

100,000,000

23

Tyron Smith

8

97,600,000

24

Marlon Humphrey

5

97,500,000

25

Michael Thomas

5

96,250,000

26

Alex Smith

4

94,000,000

27

David Bakhtiari

4

92,000,000

28

Odell Beckham, Jr

5

90,000,000

28

Ezekiel Elliot

6

90,000,000

Write the general form of the regression model (less intercept and coefficients), with the variables named appropriately so reader can identify each variable at a glance:

Dep_Var = Ind_Var_1 + Ind_Var_2 + Ind_Var_3

For instance, a typical model would be written:

Price_of_Home = Square_Footage + Number_Bedrooms + Lot_Size

6) Write the regression (prediction) equation:

Dep_Var = Intercept + c1 * Ind_Var_1 + c2 * Ind_Var_2 + c3* Ind_Var_3

7) Identify and interpret the adjusted R2

What does the value of the adjusted R2 reveal about the model?

If the adjusted R2 is low, how has the choice of independent variables created this result?

8) Identify and interpret the F test

Using the p-value approach, is the null hypothesis for the F test rejected or not rejected? Why or why not?

Interpret the implications of these findings for the model.

9) Identify and interpret the t tests for each of the coefficients

Are the signs of the coefficients as expected? If not, why not?

For each of the coefficients, interpret the numerical value.

Using the p-value approach, is the null hypothesis for the t test rejected or not rejected for each coefficient? Why or why not?

Interpret the implications of these findings for the variable.

Identify the variable with the greatest significance.

10) Analyze multicollinearity of the independent variables

Generate the correlation matrix.

Define multicollinearity.

Are any of the independent variables highly correlated with each other? If so, identify the variables and explain why they are correlated.

State the implications of multicollinearity (if found) for the model.