Use the following information for questions 11 through 14. In a paper, \"The eff

Question

Use the following information for questions 11 through 14. In a paper, "The effect of marquee players on sports demand," by Todd Jewell, the author regresses US soccer attendance on various attributes of the team, stadium, opponent and city, and also on the presence of some particularly famous players, like Beckham and Blanco. The dependent variable is log attendance; so the coefficient should be interpreted as a percent change. That is, a coefficient of 0.43 means the effect of a one unit change is 43% 11. The coefficient on Blanco (a dummy variable equal to 1 if Blanco is playing in the game) is 0.120 and the standard error is 0.036. The coefficient should be interpreted as

Explanation / Answer

Result:

11.

Keeping other attributes of the game constant, the attendance is driven up by 12% by the virtue of Blanco playing the game.

12.

The coefficient is significant at the 5% level.

13).

t = ?/se = 0.120/0.036 = 3.33

Note: sample size is not given, even for small sample size of 15, the critical value of of t is about the value 2. Therefore the calculated t value is 3.33, is significant at 5% level.

14).

Becham draws significantly more fans when he is playing for the away team.

( the away coefficient is more than home coefficients)

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