One Sample Hypothesis

One Sample Hypothesis Testing

Throughout the years baseball has been one of America’s favorite pastime. Team A chose the Major League Baseball Data set to work with for this paper. We will formulate both numerical and verbal hypotheses about the research question “is the mean salary of the American League teams equal to the entire league’s team mean salary?” A five-step hypothesis test will be performed in an effort to answer this question.

Numerical Hypothesis

The American League of Major League Baseball has been the cornerstone of baseball history in both championships and salary levels. The discussion will be based on the whether the mean salary of the American League teams is equal to the population mean team salary. The mean of all baseball team salaries is $80,284,923.87. We believe that the mean salary of the teams in the American League will be equal to the mean of all the baseball teams even with the highest salary in baseball belonging to the New York Yankees ($196,560,714), because one of the lowest salaries belongs to the Tampa Bay Rays ($35,116,308). According to Sportscity.com (2010) the total team salaries are as follows:

AL EAST

Baltimore Orioles $59,243,333

Boston Red Sox $161,922,143

New York Yankees $196,560,714

Tampa Bay Rays $35,116,308

Toronto Blue Jays $56,590,000

Total: $452,842,498

AL CENTRAL

Chicago White Sox $124,725,000

Cleveland Indians $39,329,167

Detroit Tigers $100,761,000

Kansas City Royals $32,020,000

Minnesota Twins $101,140,000

Total: $397,975,167

AL WEST

Los Angeles Angels $125,612,857

Oakland Athletics $62,647,500

Seattle Mariners $86,770,833

Texas Rangers $78,901,000

Total: $353,932,190

NL EAST

Atlanta Braves $86,873,334

Florida Marlins $51,550,000

New York Mets $136,145,000

Philadelphia Phillies $161,902,381

Washington...