University of Texas at Arlington professors Craig A. Depken II and Dennis P. Wilson have studied the pay of baseball players and discovered the following relationship between each play and team revenue (values adjusted for inflation):
Play Change in Team Revenue
Home run $406,143
Offensive walk $71,602
a. Assuming the relationships hold true and given performance below, what salary would you estimate for each player in 2006?
Player 2006 Salary Hits Home Runs Walks Strikeouts
Alex Rodriguez $22 million 166 35 8 139
Barry Bonds $19 million 99 26 38 51
Jeff Ken $9.4 million 119 14 0 69
b. If the pay of these players is higher than their marginal revenue products, how can you explain that?© BrainMass Inc. brainmass.com October 17, 2018, 3:07 am ad1c9bdddf
a. See the attached file. The Marginal Revenue Product (MRP) of the players is their estimated salary based on the given ...
Based on research by two university professors, the question of whether selected baseball players' salaries are commesurate with their value to their teams is addressed.
70. Refer to the Baseball 2000 data (Appendix K), which reports information for the 30 Major League Baseball teams for the 2000 season.
a. Determine the mean and the median team salary. Does one measure of central tendency seem better, or more representative, than the other?
b. Determine the mean and the median attendance per team. Does one measure of central tendency seem better, or more representative, than the other?
c. Determine the mean and the median number of home runs per team. Does one measure of central tendency seem better, or more representative, than the other?
d. Determine the rate of increase in players' salaries from 1989 to 2000. As a basis of comparison,in 1988 the Consumer Price Index was 118.3, in 2000 it was 166.9. Compute the rate of inflation in the Consumer Price Index and compare it to the rate of increase in baseball players' salaries.
71. Refer to the OECD data (Appendix L), which reports information on census, economic, and business data for 29 selected countries.
a. Compute the mean, median, and mode for the variable employment. Which measure of central tendency seems to be most representative of the data?
b. Compute the mean, median, and mode of the percentage of the population over the age of 65. Which measure of central tendency is most representative of the data?