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The average salary for all 27 Arizona Diamondbacks in the 2005 baseball season was $2,308,488, with a standard deviation of $3,427,508. The population, all National League baseball players in 2005, earned an average salary of $2,585,804, with a standard deviation of $3,500,708. Does the average salary of the Diamondbacks players differ from that of all players in the National League

User David Wolf
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Answer:

The average salary of the Diamondbacks players does not differ from that of all players in the National League.

Explanation:

1) Formulate null and alternate hypothesis

H0: u1= u2 Ha: u1 ≠ u2

The null hypothesis is that the average salary of the Diamondbacks players does not differ from that of all players in the National League

against the claim

that the average salary of the Diamondbacks players differ from that of all players in the National League

The data given is

x1`= $2,308,488, s1= $3,427,508 and n1 = 27

x2`= $2,585,804, s2=$3,500,708 and n2 = 27

2) The test statistic is

z= x1-x2/ sqrt( σ1 ²/n1 + σ2²/n2)

Putting the values

z = $2,308,488- $2,585,804/ sqrt( 3,427,508²/27 + 3,500,708²/27)

z= -0.294

3) The significance level is 0.05

The critical region is Z =±1.96

4) Since the calculated value of z= -0.294 is less than the z ∝=±1.96 we do not reject H0.

5) the P-value can be calculated using the calculator.

The p-value is p = 0.7687

The average salary of the Diamondbacks players does not differ from that of all players in the National League.