Solution Found!
Impact of race on football card values. University
Chapter 12, Problem 72E(choose chapter or problem)
Impact of race on football card values. University ofColorado sociologists investigated the impact of race on the value of professional football players’ “rookie” cards(Electronic Journal of Sociology, 2007). The sample consisted of 148 rookie cards of National Football League(NFL) players who were inducted into the Football Hall Of Fame. The price of the card (in dollars) was modeled as a function of several qualitative independent variables:race of player (black or white), card availability (high orlow), and player position (quarterback, running back, wide receiver, tight end, defensive lineman, linebacker, defensive back, or offensive lineman).
a. Create the appropriate dummy variables for each of the qualitative independent variables.
b. Write a model for price (y) as a function of race.Interpret the \(\beta\)’s in the model.
c. Write a model for price (y) as a function of card availability. Interpret the \(\beta\)’s in the model.
d. Write a model for price (y) as a function of position.Interpret the \(\beta\)’s in the model.
Questions & Answers
QUESTION:
Impact of race on football card values. University ofColorado sociologists investigated the impact of race on the value of professional football players’ “rookie” cards(Electronic Journal of Sociology, 2007). The sample consisted of 148 rookie cards of National Football League(NFL) players who were inducted into the Football Hall Of Fame. The price of the card (in dollars) was modeled as a function of several qualitative independent variables:race of player (black or white), card availability (high orlow), and player position (quarterback, running back, wide receiver, tight end, defensive lineman, linebacker, defensive back, or offensive lineman).
a. Create the appropriate dummy variables for each of the qualitative independent variables.
b. Write a model for price (y) as a function of race.Interpret the \(\beta\)’s in the model.
c. Write a model for price (y) as a function of card availability. Interpret the \(\beta\)’s in the model.
d. Write a model for price (y) as a function of position.Interpret the \(\beta\)’s in the model.
ANSWER:Step 1 of 5
The price of the card was modelled as a function of several qualitative independent
variables defined as shown below:
1) Race of player (black or white)
2) Card availability (high or low)
3) Player position (quarterback, running back, wide receiver, tight end, defensive
line, offensive lineman)