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Refer to the Baseball 2012 data, which report information on the 30 Major League

ID: 3128226 • Letter: R

Question

Refer to the Baseball 2012 data, which report information on the 30 Major League Baseball teams for the 2012 season. a. Conduct a test of hypothesis to determine whether the mean salary of the teams was different from $80.0 million. Use the .05 significance level. b. Using a 5% significance level, conduct a test of hypothesis to determine whether the mean attendance was more than 2,000,000 per team.

Team Salary 2012 Attendance X1 X5 X7 Arizona Diamondbacks 74.3 2.18 Atlanta Braves 83.3 2.42 Baltimore Orioles 81.4 2.1 Boston Red Sox 173.2 3.04 Chicago Cubs 88.2 2.88 Chicago White Sox 96.9 1.97 Cincinnati Reds 82.2 2.35 Cleveland Indians 78.4 1.6 Colorado Rockies 78.1 2.63 Detroit Tigers 132.3 3.03 Houston Astros 60.7 1.61 Kansas City Royals 60.9 1.74 Los Angeles Angels 154.5 3.06 Los Angeles Dodgers 95.1 3.32 Miami Marlins 118.1 2.22 Milwaukee Brewers 97.7 2.83 Minnesota Twins 94.1 2.78 New York Mets 93.4 2.24 New York Yankees 198 3.54 Oakland Athletics 55.4 1.68 Philadelphia Phillies 174.5 3.57 Pittsburgh Pirates 63.4 2.09 San Diego Padres 55.2 2.12 San Francisco Giants 117.6 3.38 Seattle Mariners 82 1.72 St. Louis Cardinals 110.3 3.26 Tampa Bay Rays 64.2 1.56 Texas Rangers 120.5 3.46 Toronto Blue Jays 75.5 2.1 Washington Nationals 81.3 2.37

Explanation / Answer

Refer to the Baseball 2012 data, which report information on the 30 Major League Baseball teams for the 2012 season. a. Conduct a test of hypothesis to determine whether the mean salary of the teams was different from $80.0 million. Use the .05 significance level.

Two tailed test

t Test for Hypothesis of the Mean

Data

Null Hypothesis                m=

80

Level of Significance

0.05

Sample Size

30

Sample Mean

98.0233

Sample Standard Deviation

36.8323

Intermediate Calculations

Standard Error of the Mean

6.7246

Degrees of Freedom

29

t Test Statistic

2.6802

Two-Tail Test

Lower Critical Value

-2.0452

Upper Critical Value

2.0452

p-Value

0.0120

Reject the null hypothesis

Calculated t =2.6802 falls in the rejection region. The null hypothesis is rejected.

We conclude that mean salary of the teams was different from $80.0 million.

b. Using a 5% significance level, conduct a test of hypothesis to determine whether the mean attendance was more than 2,000,000 per team.

Upper tail test.

t Test for Hypothesis of the Mean

Data

Null Hypothesis                m=

2

Level of Significance

0.05

Sample Size

30

Sample Mean

2.495

Sample Standard Deviation

0.6421

Intermediate Calculations

Standard Error of the Mean

0.1172

Degrees of Freedom

29

t Test Statistic

4.2221

Upper-Tail Test

Upper Critical Value

1.6991

p-Value

0.0001

Reject the null hypothesis

Calculated t =4.2221 falls in the rejection region.

The null hypothesis is rejected.

We conclude that mean attendance was more than 2,000,000 per team.

t Test for Hypothesis of the Mean

Data

Null Hypothesis                m=

80

Level of Significance

0.05

Sample Size

30

Sample Mean

98.0233

Sample Standard Deviation

36.8323

Intermediate Calculations

Standard Error of the Mean

6.7246

Degrees of Freedom

29

t Test Statistic

2.6802

Two-Tail Test

Lower Critical Value

-2.0452

Upper Critical Value

2.0452

p-Value

0.0120

Reject the null hypothesis