Can Statistics be Used Effectively to Determine an Nba Player’s Salary?
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. Others will argue that it is determined by other measurable statistics such as rebounds, assists, and games played. It is also possible that the salary payout is affected by the player’s popularity and non-game issues. Therefore, I felt the need to run a series of statistical testing to determine the cost driver of the players’ salaries. First, I gathered data on the top 35 players based on total points scored in 2007. 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 wil
