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Hypothesis Testing of Mean: Baseball 2008 Data

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59. Refer to the baseball 2008 data, which reports information on the 30 major league teams for the 2008 baseball season.

http://highered.mcgraw-hill.com/sites/0073401781/student_view0/index.html

Go to: Datasets. Unzip the file and look for the Baseball file.

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

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Solution Summary

The solution provides step by step method for the calculation of testing of hypothesis. Formula for the calculation and Interpretations of the results are also included. Interactive excel sheet is included. The user can edit the inputs and obtain the complete results for a new set of data.

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Refer to the baseball 2008 data, which reports information on the 30 major league teams for the 2008 baseball season.
Answers
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.
The null hypothesis tested is
H0: Mean salary of teams = $80.0 million (µ = 80)
The alternative hypothesis is
H1: Mean salary of teams ≠ $80.0 million (µ ≠ 80)
Significance level = 0.05
Test Statistic used is , where
Sample mean, = 89.91308657
Sample S.D., = 37.84300286, n = 30
Therefore, = 1.434775445
Decision rule: Reject the null hypothesis, if the absolute value of calculated test ...

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