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
New Hampshire Summer Learning Series Session 2: Unlock Potential with “Khanmigo Teacher Tools”
All right. Good morning everyone! Welcome back to our summer learning series for New Hampshire. Today we are going to do a deep dive with Kigo Teacher Tools. And you know what, I just realized I hope I shared my sound, but we’ll see when we play this vide…
6 habits that took me from $0 to $30,000/month by age 23
I’m 23 years old and just about like 4 years ago I was working part-time at a restaurant and I was making $6 per hour. I know it kind of like sounds scammy and maybe unbelievable for some of you, but this YouTube channel brings in $30,000 to $50K per mont…
Work For Future Generations | Continent 7: Antarctica
[Music] When I’m down in Antarctica and I see our team working, and I see our scientists who are devoting their lives to understanding the changing world based on what’s happening in Antarctica, my comfort is that there are generations after me that will …
Spooky Coincidences?
Hi, Vsauce. Michael here. You can practice speaking backwards, so when your words are reversed, they’re intelligible. But here’s something else that is weird. The digits in the speed of light are exactly the same as the latitude of the Great Pyramid of Gi…
Warren Buffett: When to Sell a Stock
The question I want to answer in this video is probably the single most difficult question in all of investing: When is the perfect time to sell a stock? Countless books have been written and videos have been made on when the right time to buy a stock is.…
The "Most Money Raised" game
One of those stupid games sometimes people play is just how much money can I raise. What’s the stupid prize? If you play the “raids as much as you can” game often, you lose control of your company. So, like, when you confront the challenges, suddenly you…