Introducing Linear Regression: An Example Using Basketball Statistics

29 Pages Posted: 9 Jan 2011

See all articles by Tom Arnold

Tom Arnold

University of Richmond - E. Claiborne Robins School of Business

Jonathan M. Godbey

Georgia State University - Department of Finance

Date Written: January 6, 2011

Abstract

The intuition behind linear regression can be difficult for students to grasp particularly without a readily accessible context. This paper uses basketball statistics to demonstrate the purpose of linear regression and to explain how to interpret its results. In particular, the student will quickly grasp the meaning of explanatory variables, r-squared, the statistical significance of estimates of regression coefficients, and applications to Finance. Even if the student is not a sports fan the examples are easily understood and familiar. The student can easily replicate the procedures in this paper to reinforce learning.

Keywords: regression, pedagogy, basketball

JEL Classification: A20, A22, C10, C20, C51, G10

Suggested Citation

Arnold, Thomas M. and Godbey, Jonathan M., Introducing Linear Regression: An Example Using Basketball Statistics (January 6, 2011). Available at SSRN: https://ssrn.com/abstract=1736184 or http://dx.doi.org/10.2139/ssrn.1736184

Thomas M. Arnold (Contact Author)

University of Richmond - E. Claiborne Robins School of Business ( email )

1 Gateway Drive
Richmond, VA 23173
United States
804-287-6399 (Phone)
804-289-8878 (Fax)

Jonathan M. Godbey

Georgia State University - Department of Finance ( email )

University Plaza
Atlanta, GA 30303-3083
United States

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