Refer to the Baseball 2002 data, which reports information on the 30 Major League Baseball teams for the 2002 season. Set up a variable that divides the teams into two groups, those that had a winning season and those that did not. There are 162 games in the season, so define a winning season as having won 81 or more games. Next, divide the teams into two salary groups. Let the 15 teams with the largest salaries be in one group and the 15 teams with the smallest salaries in the other. At the .05 significance level is there a relationship between salaries and winning?
Step by step method for testing the hypothesis under 5 step approach is discussed here. Excel template for each problem is also included. This template can be used to obtain the answers of similar problems.