Using data from Major League Baseball players
once again, you can estimate a model with the natural log of
the player’s contract value as the dependent variable and
several player characteristics as independent variables. The
independent variables include three-year averages for the
player’s slugging percentage (slg_3_avg) and at-bats
(ab_3_avg), the player’s age, and the player’s tenure (years)
with the current team. In Figure 11-8, I illustrate the
step-by-step process of performing a Park test in STATA. My
assumption is that if there’s heteroskedasticity, then at-bats is
the variable responsible for it. In this case, the coefficient for
the variable lnabavg (using the natural log of ab_3_avg as
Using data from Major League Baseball playersonce again, you can estimate a model with the natural log ofthe player’s contract value as the dependent variable andseveral player characteristics as independent variables. Theindependent variables include three-year averages for theplayer’s slugging percentage (slg_3_avg) and at-bats(ab_3_avg), the player’s age, and the player’s tenure (years)with the current team. In Figure 11-8, I illustrate thestep-by-step process of performing a Park test in STATA. Myassumption is that if there’s heteroskedasticity, then at-bats isthe variable responsible for it. In this case, the coefficient forthe variable lnabavg (using the natural log of ab_3_avg as
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