1. LILA BERRY MACKENZIE BLONDIN ANGELA SCHONDEK FACTORS CORRELATED WITH 2013 STARTING PITCHERS’ SALARIES

2. QUESTIONS Is there a correlation between a pitcher’s sabermetric measures and his salary? Are there non-performance measures associated with salary? Of these, what are the most significant factors?

3. EXPLANATORY VARIABLES WAR – Wins Above Replacement WHIP – Walks + Hits per Innings Pitched ERA – Earned Run Average K9 – Strikeouts per 9 Innings Ipouts – Outs Pitched (Innings Pitched * 3) Hits Home Runs Handedness Salary Group – Restricted, Salary Arbitration, Free Agency League – National or American League Media Market – Categorical Variable

4. HOW DID WE GET THE MODEL? Transformation Log(Salary) to best satisfy assumptions Stepwise Regression Salary Group, WAR, K9, Ipouts “Best” model (Mallow’s CP) includes: Salary Group, WAR, K9, Ipouts, & Media Market Simplify model by removing K9 and Ipouts

5. OUR MODEL

6. RESULTS Intercept (Free Agent, Top Tier Media): $6,884,341 Tier 2 Media Market: 94.68% Tier 3 Media Market: 76.19% Fully Restricted Salary: 8.98% Salary Arbitration: 26.37% WAR: 112.22% (12.22% increase)