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NBA Statistical Analysis

NBA Statistical Analysis. Econ 240A Group Project II 12/3/08 Jeff Lee Zhen Tian Tsung-Ching Huang Oystein Tennum Christian Treubig Eddie Bedach. Analysis Method. Statistics Collected Salary – Dependent Variable Height Weight PPG,RPG,APG,SPG,BPG All-Star Status

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NBA Statistical Analysis

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  1. NBA Statistical Analysis Econ 240A Group Project II 12/3/08 Jeff Lee Zhen Tian Tsung-Ching Huang Oystein Tennum Christian Treubig Eddie Bedach

  2. Analysis Method • Statistics Collected • Salary – Dependent Variable • Height • Weight • PPG,RPG,APG,SPG,BPG • All-Star Status • Number of teams played for

  3. Analysis Method • 300 player database created • 50 players from each division • - Starters and Second string from each team • Exploratory Data Analysis • Investigation of various factors on salary • Ordinary Least Square • - T-statistic, F-statistic • Analysis of Variance

  4. Physical Attributes • Height and weight found to be insignificant. • Tall/Weak is undesirable • Short/Strong is undesirable U’re shorter yet fatter… Why I was picked after you?

  5. Physical Attributes • Created dummy variable: • - Body = height * weight • Body was found to be significant

  6. Statistical Performance • Most Important Factors • 1. Blocks • 2. Assists • 3. Points • 4. Rebounds • 5. Steals

  7. “Defense Wins Championships” • To investigate this, two dummy variables • were created • OFFENSE = PPG*APG • DEFENSE = RPG*BPG*SPG • Defense was found to be much more • significant. • Teams are willing to pay more for defensive stars

  8. All-Star Status • Highly Significant • All Stars make over an average of $3,426,702 more than non all star players

  9. All Star/Non All Star Difference Why I earn much less than u?

  10. Franchise Player • A player who plays for one team for the majority of his career is considered a “Franchise Player.” • Create a dummy variable ‘FRANCHISEVET.’ • Product of Variables Franchise and Veteran • Franchise = 1 if player has played for one team only • Veteran = 1 if Years Played >5 • Franchise Players make nearly 3 million more per year, on average

  11. Larry Bird Rule • Exceed the salary cap to re-sign their free agents • Up to maximum salary • Up to 6 Years in Length • Play 3 seasons without waived or traded as a free agent Money, Money, Go My Home!

  12. Linear Regression

  13. Two-Factor Anova

  14. Correlation Test for Team/Years

  15. Without Replication

  16. Difference by Larry Bird Rule Why I earn much less than u? Understand?

  17. Final Regression • Selected most important factors to run a final regression • - Offense • - Defense • - Body • - Allstar • - Team • - Years • All found to be significant • .71 R-squared value

  18. Conclusions • Body=Money • Defense Wins Champions • Be an All-Star • Try to Stay in One Team for a Couple of Years

  19. Thank You

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