Introducing Linear Regression: An Example Using Basketball Statistics

Abstract

The intuition behind linear regression can be difficult for students to grasp particularly without a readily accessible context. This paper uses basketball statistics to demonstrate the purpose of linear regression and to explain how to interpret its results. In particular, the student will quickly grasp the meaning of explanatory variables, r-squared, the statistical significance of estimates of regression coefficients, and applications to Finance. Even if the student is not a sports fan the examples are easily understood and familiar. The student can easily replicate the procedures in this paper to reinforce learning.

Keywords: regression, pedagogy, basketball

JEL Classification: A20, A22, C10, C20, C51, G10