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Question: The following table lists Major league Baseball's (MLB's) leading pitches, their earned run average (ERA), and their salary (given in millions of dollars) for 2008. The data are also available on the text wesite, labeled MLB Pitchers.
a. Use Excel to estimate the model: Salary = β0 + β1ERA + ε and interpret the coefficient of ERA.
b. Use the estimated model to predict salary for each player, given his ERA. For example, use the sample regression equation to predict the salary for J. Santana with ERA = 2.53.
c. Derive the corresponding residuals and explain why the residuals might be so high.
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