# Hypothesis Testing - Baseball Salary Data

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Refer to the Baseball 2000 data in Appendix D, which reports on the 30 major league baseball teams for the 2000 season.

a. Conduct a test of hypothesis to determine whether the mean salary of the teams was different from $50.0 million and use a .05 significance level.

b. Conduct a test of hypothesis to determine whether the mean attendance was more than 2,000,000 per team.

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##### Solution Summary

This solution goes through each of the steps of hypothesis testing to determine mean salary of the teams and mean attendance.

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a. Conduct a test of hypothesis to determine whether the mean salary of the teams was different from $50.0 million and use

a .05 significance level.

Ho: M = 50

Ha: M =/= 50

This is a two tailed test, and please refer to EXCEL for calculation.

The mean is M = SUM(salary)/30 = 56.67

The population standard deviation is SD = SQRT(SUM(Salary-M)^2/n) = ...

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