Introduction The Major League Baseball (MLB) organization is a group of baseball teams that have made it to the Major League. The Major League Baseball data set provides the 2005 salaries of multiple Major League Baseball (MLB) teams as well as individual salaries of players within 30 teams (Lind, Marchal & Wathen, 2008). The MLB data set gives information such as batting averages, wins, salaries, home runs, errors, etc (Lind, Marchal & Wathen, 2008). Two specific teams stand out of the information when looking at their stats; St. Louis and Kansas City. These two teams are drastically different; one has the most wins out of the MLB data set, and the other has the least wins. With St. Louis and Kansas City both being in the major league, they are to be considered good, which makes us wonder if salaries play a part of one team doing better than another. We will look at the team scores as well as individual scores within the two teams to research if salaries affect the quality of performance. In this paper we will conduct a regression test of whether salaries affect the performances of St. Louis and Kansas City. Hypothesis Statement There are many differences in the two samples from the data set; we begin with the National and American league. In our data set the salary affects the performance of players based on the wins and losses. How does the salary affect the teams’ batting average? How does the salary affect the teams ERA? Kansas City has a salary of 36.9 million and their batting average is 0.263 and the ERA is 5.49. St. Louis has a salary of 92.1 million and their batting average is 0.270 and the ERA is 3.49. Is there a correlation between the batting average and ERA based on the salary each team has? In the data set th... ... middle of paper ... ... ANOVA, is a procedure in which the total variability of a random variable is subdivided into components so that it can be better understood, or attributed to each of the various sources that cause the number to vary. Applied to regression parameters, ANOVA techniques are used to determine the usefulness in a regression model, and the degree to which changes in an independent variable X can be used to explain changes in a dependent variable Y. For example, we can conduct a hypothesis-testing procedure to determine whether slope coefficients are equal to zero (the variables are unrelated), or if there is statistical meaning to the relationship (the slope b is different from zero). An F-test can be used for this process. Conclusion References Lind, Marchal, and Wathen. (2008). Statistical Techniques in Business & Economics, 13th Edition. New York, NY: McGraw-Hill
One Sample Hypothesis Testing Paper 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."
...uld be acceptable would be to issue a salary cap like every other major sport in America. The NFL and NBA were forced to have a salary cap and we haven't seen a dominant team like the Yankees since the Celtics in the 50's and 60's. Every year there is usually a different "dominant" team and the Super Bowl and NBA Championship is always up for grabs. Attendance is slowly declining in the MLB because people do not want to support their home teams when in reality, they will lose to the usual dominant high paid teams. This is not fair to any sports fan and the only acceptable solution to keep attendance high and ratings up is to issue a salary cap.
As previously mentioned, Paul DePodesta, an analyst from the Oakland Athletics, was on the foreground of this type of analysis in the MLB. His discovery of the correlation between winning percentage and team revenues was just the starting point. His methodology of model building was briefly touched on before, but it started with running regression analysis on a series of different typical baseball statistics, and continued with his finding of On Base Percentage and Slugging Percentage being the stats that correlated closest to winning percentage, and the implementation of the AVM systems models outputting a player’s expected run values. MLB’s regression analysis on a player’s MRP for a team is some of the most sophisticated in professional sports, with other leagues and teams starting to catch on and attempting to create their own models of MRP for their respective leagues. By taking the labor market theory and MRP of players and analyzing how they interact with wage determination and competitive balance mechanisms, we can make an economic analysis of the labor market inefficiencies.
Baseball statistics are meant to be a representation of a player’s talent. Since baseball’s inception around the mid-19th century, statistics have been used to interpret the talent level of any given player, however, the statistics that have been traditionally used to define talent are often times misleading. At a fundamental level, baseball, like any game, is about winning. To win games, teams have to score runs; to score runs, players have to get on base any way they can. All the while, the pitcher and the defense are supposed to prevent runs from scoring. As simplistic as this view sounds, the statistics being used to evaluate individual players were extremely flawed. In an attempt to develop more specific, objective forms of statistical analysis, the idea of Sabermetrics was born. Bill James, a man who never played or coached professional baseball, is often credited as a pioneer in the field and for coining the name as homage to the Society of American Baseball Research, or SABR. Eventually, the use of Sabermetrics became widespread in the Major Leagues, the first team being the Oakland Athletics, as depicted in Moneyball. Bill James and other baseball statisticians have developed various methods of evaluating a player performance that allow for a more objective view of the game, broadly defined as Sabermetrics.
Our conclusion is that while a rise in each stat had some affect in the rise or fall of winning percentage, we could not determine a single stat that had a direct affect on the dependent variable (Winning Percentage). Our results were more effective when we ran the test on how the combination of all stats affected winning percentage, however, this would be obvious given the nature of our study.
When looking into the history of our culture, there are many subtopics that fall under the word, “history.” Topics such as arts and literature, food, and media fall into place. Among these topics reside sports. Since the beginning of time, sports have persisted as an activity intertwined with the daily life of people. Whether it is a pick-up game of football in the backyard, or catching an evening game at the local stadium, sports have become the national pastime. According to Marcus Jansen of the Sign Post, more specifically, baseball is America’s national pastime, competing with other sports (Jansen 1). Providing the entertainment that Americans pay top dollar for, live the role models, superstars, and celebrities that put on a jersey as their job. As said in an article by Lucas Reilly, Americans spend close to $25.4 billion dollars on professional sports (Reilly 4). The people that many children want to be when they grow up are not the firefighters or astronauts told about in bed time stories. These dream jobs or fantasies have become swinging a bat or tossing a football in front of millions of screaming fans. When asked why so many dream of having such job, the majority will respond with a salary related answer. In today’s day and age, the average athlete is paid more than our own president. The cold hard facts show that in professional sports, the circulation of money is endless. Certain teams in professional baseball and football are worth over millions of dollars. Consequently, the teams who are worth more are able to spend more. The issue that arises with this philosophy is virtually how much more? League managers, team owners and other sports officials have sought out a solution to the surfacing problem. Is it fair to let...
One of the most iconic names in baseball is the team name “New York Yankees”, and along with it have come some equally as famous players. The Yankees have had so much talent come through their stadium, names including Babe Ruth, Yogi Berra and Mickie Mantle to name a few. Though there are several arguments about who the greatest players of the game are it is no question who the top ten are from the New York team. Based on up to date career statistics these players have a ninety year span of talent between them. These players may not have top score in all parts of the game but they have all set certain records that either have yet to be broken or held for a longer time than most students have been alive.
Professional sports were beginning to be organized in the 1850s. At this point, their salaries, although they were still higher than the average person’s, were not too outrageous. In the 1880s and 90s, baseball players in particular were making on average about $1,750 annually. Even though this was three times the salary of an industrial worker of the time, they were not happy with this amount of money and felt they should be earning more (Baseball n.d.). In the 1970s, the worlds of professional sports took a drastic turn. According to an article by J.L. Carnagie, “Two words described sports in the 1970s: big business. Owners and athletes in major professional team sports knew there was money to be made in their games, and they went after it.” (Carnagie, n.d.) Athletes, especially, realized how competitive teams were becoming, and they were well aware that talent was in high demand. In the beginning of 1980s, the best athletes were demanding even more money; and the majority of the time, they got what they wanted. By end of the 1980s, many athletes were making over a million dollars (Carnagie, n.d.) These increasing salaries were very ironic because when professional sports began they were intended to be a showcase of players’ talent and athletic ability. Professional sports leagues were also supposed to be similar to the Olympics in that they would be free of politics and influence of society. However, by the 80s, they had become all about the star athletes and how much money they could make. By this point, professional sports had evolved into an industry that was focused on entertainment and money, rather than the sports actually being played (Carnagie, n.d.).
Noll, Roger, and Zimbalist, Andrew. Sports, Jobs, and Taxes: The Economic Impact of Sports Teams and Stadiums. Brooking institutions press, Summer 1997. Vol. 15 No. 3.
Trusting your own skills and working hard to get to the level you want to be at in baseball is commonly referred to as “the process.” The average salary of a major league baseball player is 3.5 million while minor leaguers make about 20,000 dollars a year. Passion and money is the sole reason why every baseball player wants to make it for the top. Professional baseball is composed of seven levels which can be categorized into three levels consisting of the lower, middle, and upper levels. Each level is different, but everyone has the same goal. Make it to the major leagues. As long as players work hard and stay dedicated they can achieve their dreams. The greatest thing about baseball is that is is like Florida weather because it is so unpredictable.
The Negro League was similar to the majors because they had an all-star game, league winners, a minor league structure, and a World Series. However, the conditions of players’ lives in the Negro League were very different than those from the white leagues. The players spent all day, every day to...
Baseball remains today one of America’s most popular sports, and furthermore, baseball is one of America’s most successful forms of entertainment. As a result, Baseball is an economic being of its own. However, the sustainability of any professional sport organization depends directly on its economic capabilities. For example, in Baseball, all revenue is a product of the fans reaction to ticket prices, advertisements, television contracts, etc. During the devastating Great Depression in 1929, the fans of baseball experienced fiscal suffering. The appeal of baseball declined as more and more people were trying to make enough money to live. There was a significant drop in attention, attendance, and enjoyment. Although baseball’s vitality might have seemed threatened by the overwhelming Great Depression, the baseball community modernized their sport by implementing new changes that resulted in the game’s survival.
vary by player performance”(Findlay & Santos, 2012, p. 131). When Findlay and Santos used the correct performance and price data, “none of the estimated
13. Romano, P.L. "Trends in Management Accounting." Management Accounting, August 1990, pp. 53-56. 14.
While sports for the spectators are merely entertainment, the economics of the industry are what drives businesses to become involved. Sports have become more of a business entity rather than an entertainment industry due to the strong economic perception of the over all industry. There are several instances in which economics may contribute to the effect on the sports industry, such as: the success of a team, the price of a ticket, the amount of money an athlete will make, and the amount of profit a team will make. The success of an...