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Hypothesis Testing using Alpha

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NFL2000

Using these data, perform an appropriate test of hypothesis, at the alpha = .05 level of significance, to determine whether compensation for players in the NFL is dependent on the team for which they play. What is your conclusion?

NFL salaries and bonuses 2000 season

Salary 49ers Bears Bengals Bills Broncos Browns Buccaneers Cardinals Chargers Chiefs Colts Cowboys Dolphins Eagles Falcons Giants Jaquars Jets Lions Packers Panthers Patriots Raiders Rams Ravens Redskins Saints Seahawks Steelers Titans Vikings Grand Total
0-299999 25 23 21 22 18 31 14 19 18 18 27 26 15 19 19 24 19 16 11 24 22 25 14 16 13 17 16 27 19 21 15 614
300000-599999 34 21 16 30 26 24 25 26 34 33 20 26 37 20 27 32 36 26 34 22 34 27 34 25 36 36 33 21 26 27 33 881
600000-900000 5 8 1 6 2 9 4 2 3 4 1 2 5 7 4 5 5 5 2 2 2 2 4 3 1 4 3 6 2 109
>900000 1 12 11 1 8 5 7 11 4 4 6 4 9 11 8 3 6 6 7 3 3 5 10 5 4 10 5 10 6 4 189
Grand Total 60 61 56 54 58 62 55 60 58 58 57 57 63 55 61 59 59 53 56 58 61 57 55 53 58 60 60 57 58 60 54 1793

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Solution Preview

The hypothesis statements are:
H0: Compensation and team are independent
H1: Compensation and team are dependent

Count the number of rows and the number of columns in the data table.
Number of rows is r = 4
Number of columns is c = 31

Determine the degrees of freedom, df by using the following ...

Solution Summary

An Excel file showing all computations and formulas is given. A test description of the steps and conclusion are provided.

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