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

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Hypothesis Test Results The research question the researchers asked was do baseball teams with higher salaries win more baseball games. To prove this statement or hunch the 5 step hypothesis test was performed. The findings of the test indicate the null hypothesis is false and therefore, the alternative hypothesis is true. The null hypothesis in this research is that baseball teams with higher salaries win fewer baseball games and the alternative hypothesis is that teams with larger payrolls don’t win anymore than teams with a smaller payroll. The null and alternative hypotheses were then tested assuming that the null hypothesis is true. A right sided test was used for this hypothesis test because the alternative hypothesis contained the inequality >. The level of significance used was 1.701 which is the ending point of the right tailed test. The decision rule of t>1.701 reject Ho was then used. The results of the test show that t-statistic 3.27 falls within the rejection area and therefore, the null hypothesis is rejected.

The original research question “do baseball teams with higher salaries win more baseball games?” can now be answered based on the findings from the hypothesis testing. The answer to the original research question is yes, baseball teams with higher salaries do win more baseball games than teams with lower salaries. Performing the 5 step