Basketball Statistics Blog

Friday Press Clippings:
Can Statistics be Used Effectively to Determine an NBA Player's Salary?

From Articlesbase
By Robert Clee
Download source here: ' Can Statistics be Used Effectively to Determine an NBA Player's Salary ? ' by Robert Clee

"... How do employers decide the salary payout to their employees every year? In a sales and consulting firm the salary can be based on the number sales or clients serviced.

How do the National Basketball Association (NBA) team owners decide the players’ salaries?

The general consensus of basketball fanatics is that the wages are based on points scored..."

"... Throughout this article I will frequently refer to the term cost driver, which is an independent variable that drivers or affects the dependent variable of salary.

Basically, the cost driver is on the x-axis and the salary will be on the y-axis.

The different cost drivers I chose for testing are points scored, rebounds, assists, and games played. ..."

"... A regression analysis is a statistical method for obtaining the cost estimate that best fits the set of data points. Basically, the regression observes all the data points within each cost driver and dependent variable to develop the most reliable cost equation.

After performing the regression, there are two crucial measures that I will observe closely... "

"... I decided to conduct a multiple regression on the points, assists, rebounds, games played, and salary as a final attempt to determine the validity and reliability of the data.

Previously, I was running a regression using one independent variable.
In the multiple regression analysis I included all the independent variables to help strengthen the explanatory power of the regression.

After completing the multiple regression analysis..."

"... To conclude, one cannot determine with absolute certainty that an NBA player’s salary based on statistic analysis of measurable statistics such as points scored, assists, rebounds, and games played.

I was able to learn that a player’s salary is not solely based on the measurable performance stats.

A player’s true worth to the team is sometimes determined by immeasurable factors such as popularity, exposure, loyalty, and leadership.

Through my statistical analysis or investigation, I state that no player’s salary can be reasonably determined on the basis of performance on the court. ..."

Read more articles in Articlesbase.

To read today's 'Press Clippings' in Spanish, click this week above on the 'Español' tab or afterwards click here: ' Efectos del uso abusivo de la valoración estadística ' by Fernando Martín.

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tags:  basketball  ~  statistician's digest   ~  basketball analysis  ~  Robert Clee
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