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
Compare costs of postsecondary education | Careers and education | Financial literacy | Khan Academy
So let’s talk a little bit about how to compare costs based on all of your college options. The biggest piece of cost is going to be your tuition, and then of course your living expenses: room and board, where you’re going to live, and what you’re going t…
The SECRET Behind The World's Best Lobster Roll | Chef Wonderful
Where can you get the best slops on earth? Right here in Nantucket, and there’s one place you come. How long have you been open here? 45 years. 45 years! This is my new gig from now on. You’re gonna find me here. Hey, chef, wonderful here! Where am I? Yo…
The 2023 Recession Keeps Getting Worse
What’s up Grandma? It’s guys here. So while everyone is busy watching Tesla drop the price of their cars by up to 20%, we’ve got another issue quietly brewing behind the scenes. That’s the fact that the United States is quickly running out of money, with …
How To Get Rich In Your 20s (Realistically)
What’s up guys, it’s Graham here. So unfortunately, it’s widely believed that Millennials are the most financially screwed generation in history. After all, mortgage rates are at their most expensive level since 2001. Food prices are rising at the fastest…
Passive Income: How To Invest $100 In 2023
What’s up, Graham? It’s guys here, so imagine if you had an extra five, ten, or even twenty dollars a day deposited into your bank account without you having to do any work whatsoever. What color would your Lambo be? All right, in all seriousness, someon…
How Sustainable Plantations Help Save Uganda’s Decimated Forests | Short Film Showcase
[Music] [Music] [Music] People have cut down trees because they need fuel. People have cut down trees because they need to construct homes. It is important that people do have access to forest and timber resources, but this needs to be on a sustainable ba…