# Jackson - PowerPoint by niusheng11

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```									                                                                                 Game, Set, Money!
Department of Economics/Finance
Meagan Jackson
Ali Ballard
Heather Brantley
Evaluating the Statistical Significance
Abstract                                                                                Data
of Estimated Coefficients
This study estimates the determinants of career prize                         Equation:                                                             P-values are a measure of statistical significance. If
money for the top 100 Women’s Tennis Association                              Log of Career Prize Money = f(Total Wins, Years Pro,                  the observed significance level is less than the chosen
(WTA) players in 2009. We use various measures of                             Height, US, Other, Right)                                             significance level (alpha), then the researcher should
performance and physical attributes to analyze whether
reject the null hypothesis in favor of the
these variables can explain the variation in women’s
Table 1 Descriptive Statistics                                       alternative. Otherwise, there is not enough evidence to
career prize money. In addition to total wins, other
reject the null hypothesis. For instance, if a P-value for
important determinants of career prize money include                     Variable       Standard             Mean        Maximum         Minimum    the estimated coefficient of a variable is 0.0012, this
number of years in the WTA, height, nationality, and                                    Deviation                                                   means that there is only a 12 in 10,000 chance that the
whether the player is right-handed. For every ten wins
true coefficient of price is actually 0. The lower the P-
on the tour, a player’s career salary will increase                   Log of           \$4,596,906      \$3,261,129       \$26,547,893      \$209,511   value for an estimated coefficient, the more confident
approximately five percent. Each year in the WTA will                 Career Prize                                                                  you are in the estimate. In our paper, P-values of 0.10
increase a player’s career salary by six percent. Each                Money                                                                         or lower are considered low enough for us to be
additional inch in height will increase salary by roughly 5           Total Wins          106.20             261.96       550.00           88.00    confident that the estimated coefficient is statistically
percent. While a player from the United States does not
Age                  4.38              24.45            38.00        18.00    significant. If the P-value is 0.05, we say that the
earn significantly more or less than a Russian player,
estimated coefficient is statistically significant at the 5
players of non-American origin earn approximately 28                  Years Pro            3.83               9.10            18.00         2.00    percent level.
percent less than a Russian player. Finally, right-
handed players earn 33 percent more than left-handed                  Height               2.69              68.04            75.00        61.50
players.                                                                                                                                                             Conclusion/Results
Table 2 Regression Results                                           We collected data on various factors we believed were
Variables                                                                                                                    relevant to a player’s financial success and the results
Independent Variables                                                 Variable           Coefficient          Standard Error          P-Value       suggest that many of the coefficients on these variables
Total Wins: All registered single matches played over
were in fact statistically significant. Since the Career Prize
the course of a player’s career                                       Total Wins               0.005                  0.001             <.0001
Money dependent variable was not normally distributed, we
Years Pro: Total number of years the player has been
Years Pro                0.061                  0.022              0.007      decided to use a log transformation to normalize the data.
in the WTA
Total Wins, Years Pro, Height, Nationality, and whether the
Height: Player’s height in inches                                     Height                   0.047                  0.021              0.028
player is Right-handed were all significant determinants of
US: Refers to a player’s nationality
US                      -0.135                  0.208              0.518      Career Prize Money. While 2009 saw a surge of Russian
Other: Players of non-American and non-Russian
women finishing in the top 100, they did not earn
nationality                                                           Other                   -0.283                  0.154              0.069      significantly more prize money than American players.
Right: Indicates whether the player is right handed
Right                    0.335                  0.190              0.082      Future research would expand the number of observations
Dependent Variable
to include the top 100 players from 2000-2009 and create a
Log of Career Prize Money: The log of money earned                    Adj. R2 = 0.63                                                                dependent variable that includes both career prize money
through match winnings                                                N = 100                                                                       and money from sponsorships.

References: http://sports.espn.go.com/sports/tennis/history?type=women, http://www.tennis-x.com/rankings.php

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