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1. Select any research idea that you are interested. Write down a research question. For example, I am interested in the Salary of baseball players. My research question is "Does age determines wages of baseball players?"
2. Write down your research question in a functional form that can be tested using the Regression Analysis. Your model must include an endogenous variable and at least three exogenous variables. One of the exogenous variables should be the "main interest" variable. Explain why For example, my endogenous variable is "wages" and my main-interest exogenous variable is "players' age (age)". However, I know that there are other factors that can affect players' salary such as performance (Perf) , market size of the team that they are playing for (Pop)etc. My model will look like
Wages = b0 + b1Age + b2Perf + b3Pop
3. Provide "expected sign" for the coefficient b1, b2, b3 with the reason behind your believe. For example, my expected sign for b1 is positive because older players have more experience and should get more money. The expected sign for b2 should be positive because better performance should lead to better compensation. For b3, again the expected sign should be positive because the team that locates in a bigger city should have more fans and more money to pay its players
The Law of Supply suggests that the price-elasticity of supply is: If a 10 percent increase in the price of one good results in no change in the quantity demanded of another good, then it can be concluded that the two goods are:
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