Takeisha Willis

Statistics

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December 21, 2017

Major League Baseball is
the highest level of play in American professional baseball. (Wikipedia) It
also happens to be a very popular sport with many fans. The league consists of
30 Major League Baseball teams each one requiring time and money so that they
can recruit the best players for each of the franchises. The goal for each team
is to recruit a winning player so the team is able to win the World Series.
Winning the World Series will help to create more revenue for the city and
team. My hypothesis will test whether the millions of dollars spent on
salaries, to recruit the best players, will give a MLB team the advantage with
better league standings.

In the chart on the last
page you will see the team payroll, average salary per player, and winning
percentage of the 30 Major League Baseball teams. I have research whether or
not the Major League Baseball teams with the higher salaries have better league
standings. The data for this study was obtained through the references on the
4th page. In some cases, parts of salaries deferred without interest are
discounted to reflect present-day values. (CBS Sports) When testing the
hypothesis the parameter to be tested is if higher paid baseball players bring
more wins to a franchise.

One factor appearing to
have an impact on the competitive edge in the game is team salary. The
hypothesis for the study is, will having a payroll in the top 50% ensure the
team’s winning percentage will be in the top 50%. In the 2008 season, the
average winning percentage of the top 50%, 15 teams, was 53.29 with a standard
deviation of .0629. The hypothesis needs to be determined whether or not a team
in the top half of payrolls can be selected at random and the winning
percentage will exceed .500. If the z-test result is greater than the .05
significance level equivalency, then the null hypothesis must be rejected. On
the other hand if the z-test is less than the significance level equivalency,
the hypothesis will have to be rejected.

According to the z-test, I
can accept the hypothesis with a .05 significance level equivalency. The
Philadelphia Phillies won the World Series in 2008 and the team salary was
\$98,269,957. The Philadelphia Phillies were ranked number 13 in the league for
team salary. Tampa Bay Rays, ranked number 29 in team salaries, with a salary
of \$43,820,598.00, won the pennant with some of the lowest paid salary players
in baseball. The New York Yankees have the highest payroll and the team did not
make the post season playoffs (CBS Sports).

When viewing the chart on
the next page, one can argue the hypothesis that teams with higher salaries
translates into more wins. If the hypothesis was true the teams winning
percentages would decrease as the team’s salary rank decreased. As the chart
shows, higher salaries do not always translate into more wins.

Inferential statistics
uses a broader way of collecting data which attempts to reach a conclusion that
extends beyond immediate information alone. Inferential statistics is a set of
methods used to make generalizations, estimations, predictions, or decisions.
Both inferential and descriptive statistics are for processing, collecting,
comparing, and making conclusions regarding statistical information.
Descriptive statistics are used to describe the features being studied through
numerical data. With descriptive statistics you describe what the data is
showing. With inferential statistics you are drawing a conclusion that goes
beyond the data shown. Inferential statistics also makes a prediction with the
data given and are used to try to infer from the sample data what the
population might think. (Research Methods, 2006) We use inferential statistics
to make judgments of the probability that an observed difference between groups
is a dependable one or one that might have happened by chance in this study.
Because of these facts I’d say this study is both descriptive and inferential.

My goal was to determine
if the hypothesis stating teams with a higher payroll are the teams with the
most wins or highest winning percentage was in fact true. My chart proves the
proposed hypothesis is not true. In the 2008 season, the two teams left
standing at the end of the year was the Philadelphia Phillies and the Tampa Bay
Rays who ranked 13th and 29th respectively. At the top of the chart were the
New York Yankees and the Detroit Tigers both of which did not qualify for the
playoffs.

Works Cited

CBS Sports (2008). MLB Salaries. Retrieved December 11, 2017
from http://www.sportsline.com/mlb/salaries/teams .

“Major League Baseball.” Wikipedia, The Free
Encyclopedia. 11 Dec 2017, 16:46 UTC.

Research Methods. (2006). Inferential Statistics. Retrieved
December 11, 2017, from http://www.socialresearchmethods.net/kb/statinf.php

Research Methods. (2006). Descriptive Statistics. Retrieved
December 11, 2017, from http://www.socialresearchmethods.net/kb/statdesc.php

Mlb.com

ESPN.com

Team Name                             Team
Payroll                 (Mean)
Winning %

New
York Yankees

\$209,081,579.00

\$6,744,567.00

54.900%

Detroit
Tigers

\$138,685,197.00

\$4,622,840.00

45.700%

New
York Mets

\$138,293,379.00

\$4,609,779.00

54.900%

Boston
Red Sox

\$133,440,037.00

\$4,765,716.00

58.600%

Chicago
White Sox

\$121,152,667.00

\$4,487,136.00

54.600%

Los
Angeles Angels

\$119,216,333.00

\$4,110,908.00

61.700%

Chicago
Cubs

\$118,595,833.00

\$4,392,438.00

54.600%

Los
Angeles Dodgers

\$118,536,038.00

\$4,233,430.00

60.200%

Seattle
Mariners

\$117,993,982.00

\$4,538,230.00

37.700%

Atlanta
Braves

\$102,424,018.00

\$3,414,134.00

44.400%

St.
Louis Cardinals

\$100,624,450.00

\$3,049,226.00

53.100%

Toronto
Blue Jays

\$98,641,957.00

\$3,522,927.00

53.100%

Phillies

\$98,269,881.00

\$3,388,617.00

56.800%

Houston
Astros

\$88,930,415.00

\$3,293,719.00

53.400%

Milwaukee
Brewers

\$81,004,167.00

\$2,793,247.00

55.600%

Cleveland
Indians

\$78,970,067.00

\$3,037,310.00

50.000%

San
Francisco Giants

\$76,904,500.00

\$2,651,879.00

44.400%

Cincinnati
Reds

\$74,277,695.00

\$2,971,108.00

45.700%

San

\$73,677,617.00

\$2,376,697.00

38.900%

Rockies

\$68,655,500.00

\$2,640,596.00

45.700%

Texas
Rangers

\$68,239,551.00

\$2,353,088.00

48.800%

Baltimore
Orioles

\$67,196,248.00

\$2,099,883.00

42.200%

Arizona
Diamondbacks

\$66,202,713.00

\$2,364,383.00

50.600%

Minnesota
Twins

\$62,182,767.00

\$2,487,311.00

54.000%

Kansas
City Royals

\$58,245,500.00

\$2,240,212.00

46.300%

Washington
Nationals

\$54,961,000.00

\$1,895,207.00

36.600%

Pittsburg
Pirates

\$49,365,283.00

\$1,898,665.00

41.400%

Oakland
Athletics

\$47,967,126.00

\$1,713,112.00

46.600%

Tampa
Bay Rays

\$43,820,598.00

\$1,460,687.00

59.900%

Florida
Marlins

\$21,836,500.00

\$661,712.00

52.200%