# Essay Hypotesis Testing

869 Words Oct 30th, 2011 4 Pages
Hypothesis Paper
Mohammed Shayan
Do Major League Baseball teams with higher salaries win more frequently than other teams? Although many people believe that the larger payroll budgets win games, which point does vary, depending on the situation. “…performances by individual players vary quite a bit from year to year, preventing owners from guaranteeing success on the field. Team spending is certainly a component in winning, but no team can buy a championship.” (Bradbury). For some, it’s hard not to root for the lower paid teams. If the big money teams, like Goliath, are always supposed to win, it’s hard not cheer for David. This paper will discuss the effects of payroll budgets on the percentage of wins for the 30 Major League
This leads to the numerical hypothesis statements regarding the null and alternative hypotheses.
Null Hypothesis: Ho=1  2
Alternative Hypothesis Ho=1 > 2
The research methodology is to divide the teams by their salary means. Then the win means will be compared to determine if there’s a significant difference in production of high salary teams and lower salary teams. 1, teams with larger payrolls, will be defined as teams with payrolls that are average or above average (see chart team A) and 2, teams with smaller payrolls, will be defined as teams with less than average payrolls (see chart team B).
State the Level of Significance
Alpha:  =. 05=t.05 with 28 degrees of freedom=1.701(from Alex calculator)
Test static t (because  is unknown) Decision rule: if t>1.701 reject Ho
Calculation of test value t=xbar1-xbar2/the square root of s squared subscript p(1/n1+1/n2) s squared subscript p=(n1-1)s squared2 subscript1+(n2-1)s squared2 subscript2]/n1+n2-2. The numerator of the function, n1+n2-2, is the degrees of freedom. Team A (1) Team B (2)
Sample Mean 85.86 76.88
Sample Stdev 10.65 9.42
Number 14 16
The t static = 88.86-76.88=11.98
The square root of
1474.493+1331.046/14+16-2(1/14+1/16)= 11.98the square root of 100.198(.134)= 11.983664=3.27

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