The following table lists a portion of Major League Baseball’s (MLB’s) leading pitchers, each pitcher’s salary...

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The following table lists a portion of Major League Baseball’s(MLB’s) leading pitchers, each pitcher’s salary (In $ millions),and earned run average (ERA) for 2008. Salary ERA J. Santana 17.02.28 C. Lee 3.0 2.39 ⋮ ⋮ ⋮ C. Hamels 0.2 3.00 Click here for theExcel Data File a-1. Estimate the model: Salary = β0 + β1ERA + ε.(Negative values should be indicated by a minus sign. Enter youranswers, in millions, rounded to 2 decimal places.) Salaryˆ= + ERAa-2. Interpret the coefficient of ERA. A one-unit increase in ERA,predicted salary decreases by $3.20 million. A one-unit increase inERA, predicted salary increases by $3.20 million. A one-unitincrease in ERA, predicted salary decreases by $11.92 million. Aone-unit increase in ERA, predicted salary increases by $11.92million. b. Use the estimated model to predict salary for eachplayer, given his ERA. For example, use the sample regressionequation to predict the salary for J. Santana with ERA = 2.28.(Round coefficient estimates to at least 4 decimal places and finalanswers, in millions, to 2 decimal places.) c. Derive thecorresponding residuals. (Negative values should be indicated by aminus sign. Round coefficient estimates to at least 4 decimalplaces and final answers, in millions, to 2 decimal places.)

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