yego.me
💡 Stop wasting time. Read Youtube instead of watch. Download Chrome Extension

Interpreting y-intercept in regression model | AP Statistics | Khan Academy


2m read
·Nov 11, 2024

Adriana gathered data on different schools' winning percentages and the average yearly salary of their head coaches in millions of dollars in the years 2000 to 2011. She then created the following scatter plot and trend line.

So this is salary in millions of dollars in the winning percentage. Here we have a coach who made over $4 million, and it looks like they won over 80% of their games. But then you have this coach over here who has a salary of a little over $1.5 million, and they are winning over 85%.

Each of these data points is a coach, and it's plotting their salary or their winning percentage against their salary. Assuming the line correctly shows the trend in the data, and it's a bit of an assumption, there are some outliers here that are well away from the model.

It looks like there's a positive linear correlation here, but it's not super tight. There are a bunch of coaches right over here in the lower salary area, going all the way from 20-something percent to over 60%.

Assuming the line correctly shows the trend in the data, what does it mean that the line's Y-intercept is 39? Well, if you believe the model, then a Y-intercept of being 39 would suggest that if someone makes no money, the model would expect them to win 39% of their games, which seems a little unrealistic because you would expect most coaches to get paid something.

But anyway, let's see which of these choices actually describe that. So let me look at the choices:

  1. The average salary was $39 million. No, no one on our chart made 39 million on average.
  2. Each million dollar increase in salary was associated with a 39% increase in winning percentage. Now that would be something related to the slope, and the slope was definitely not 39.
  3. The average winning percentage was 39%. No, that wasn't the case either.
  4. The model indicates that teams with coaches who had a salary of $0 million will average a winning percentage of approximately 39%.

Yeah, this is the closest statement to what we just said. If you believe that model—and that's a big if—if you believe this model, then this model says someone making $0 will get 39%.

This is frankly why you have to be skeptical of models; they're not going to be perfect, especially at extreme cases oftentimes. But who knows?

Anyway, hopefully, you found that useful.

More Articles

View All
A Conversation with Ooshma Garg - Moderated by Adora Cheung
Thank you for coming today. My name is Dora; I’m one of the partners here at Y Combinator. Today we’re going to have a conversation with Oozma Magog, who is the CEO and founder of Gobble, which creates and delivers 15-minute pan dinners to you. I am perso…
🇺🇸 DOES YOUR FLAG FAIL? Grey Grades State Flags!
[school bell rings] Hello, class. Your homework assignment as the U.S. states that you are was to make your state flag. A flag to stir pride in your citizens. A flag to stand proud on the American stage. A tough task, though not too tough with the guidel…
How to Invest for an 8% Return
What’s up you guys? It’s Graham here. So, probably one of the most common critiques I get in my videos is it’ll often assume and base my calculations off of an 8 percent return. And probably one of the most common comments that get in response to this is,…
Peru Orphanage Update - Smarter Every Day 163
Hey it’s me, Destin. Welcome back to Smarter Every Day. Every December, here at Smarter Every Day, we help an orphanage in Peru, and a million people are new to Smarter Every Day this year, so you might not know about this. So if you want to learn how we …
Touring a $44,000,000 Mansion in the Hollywood Hills
What’s of you guys? It’s Graham here. So I’m here with my colleague, Jason Oppenheim from Netflix’s hit show, Selling Sunset, and we’re on our way right now to see one of his forty million dollar listings up on the Sunset Strip here in Hollywood. It is, I…
Climate Change Through Bill Nye’s Eyes | Nat Geo Live
So I just to talk briefly about me. I took one class as an elective from Carl Sagan, a long time ago. What he was talking about was something he a phrase that he loved: Comparative climatology. So we compared the climate of Mars with the climate of Venus …