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
Bill Ackman on Short Selling
You I would be remiss if we spent this time together and we didn’t talk a little about Herbalife. Herbalife, for those of you who don’t know, and Bill’s gonna explain more, is a Direct Selling scheme. The day I came to see you in New York, you were about …
Design Tips to Convert More Customers | Design Review
It’s one thing to get somebody to your website; it’s another to actually get them to sign up or convert. So today we’re going to look specifically at how well your sites convert clicks to customers. Welcome to another episode of Design Review. Today we ar…
An Encounter With an Electric Eel | Primal Survivor: Escape the Amazon
Okay, I’m gonna check this trap here. I see something moving in there. What the hell is that? Something’s growling. It’s like this deep—okay, ah, there’s something in there. I have a feeling I know exactly what it is. I think there’s an electric eel in th…
WoW CREEP !! -- Wackygamer Stand-Up [Comic-Con 2010]
Hey guys, Jeff here from Roy Gamer. What you’re about to see is some clips from the cross-platform comedy standup show we did at ComicCon this year. I hope you enjoy. I’ll leave you with one last thought. Uh, back on World of Warcraft, because I know you…
Unlocking the Power of Your Mind with Neuralink Technology #Shorts
Neuralink cuts out the middleman and allows input and output directly from your brain to whatever you’re doing on a machine or vice versa. It’s like going from writing using a quill to having a pencil, to having a keyboard, to having Siri, to now potentia…
10 Stoic Keys That Make You Outsmart Everybody Else (Stoicism)
In the heart of a bustling city, there was a young man who seemed to have it all: a great job, a loving family, and a vibrant social life. Yet every night, he found himself staring at the ceiling, gripped by an unsettling feeling that something was missin…