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." (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 Baseball teams of 2007.
There’s 30 major league baseball teams divided into two divisions. The payrolls for the 2007 30 major league teams are based on a 40 man roster and include salaries and prorated shares of signing bonuses, earned incentive bonuses, non-cash compensation, buyouts of unexercised options and cash transactions. There may be some cases were parts of the salaries are deferred or discounted to reflect present-day values. The following list is in order of highest payroll. The chart on the left is payroll and the one on the right is number of wins for 2007.
Based on the charts if a team is at the top end of the payroll chances are they will have a good season, after the top eight of the payroll it’s kind of scattered. So if they want to have a strong shoot at winning you have to be in the top eight of payrolls. A team that has defied the payroll and still have just six less wins then the highest payroll and the team is Arizona who has the 23rd highest payroll and was ranked 5th in wins. Baseball teams with higher payrolls do win more games, but only to a certain point, in the case of the 2007 season it’s the top eight.
5 Step Procedure
List the Null and Alternative Hypothesis
The reach question “do baseball teams with higher payroll win more?” will for testing purposes be turned into the verbal Hypothesis statement, baseball teams with larger payrolls don’t win anymore than teams with smaller payrolls. This leads to the numerical hypothesis statements regarding the null and alternative hypotheses.
Null Hypothesis: Ho=1 2
...t pool is not adequate to call up enough players to fill two new expansion teams, while maintaining the same level of play in all facets of the game. “The influx of inferior talent filling those new roster spots fundamentally altered the competitive environment: it allowed elite players, especially hitters, to excel” (Bradbury). Up to this point in time, the major league of baseball continued to populate the league with better-quality baseball players through the exploitation of rapid population growth, and racial integration. However, this growth trend was reversed through the implementation of expansion in 1990s. By filling the expansion teams with subpar talent in juxtaposition to the major leagues’ talent level, the dilution of player quality was felt throughout the entire league and throughout all phases of the game including, pitching, hitting, and defense.
For the last 30 years, the New York Yankees have been a dominant force in Major League Baseball. Other teams do not make as much money as the New York Yankees therefore they have less capital to spend on big name players. In 1994, the Major Leagues put the luxury tax into place. The idea was to tax a club’s payroll if the total payroll exceeded a certain limit. However, the Yankees seem to exceed this limit every year. The Yankees are a notable team not only for their impressive history on the field, but also for their financial situation. The Yankees owner spends more on player salaries than any other franchise in baseball. “As of 2004, the team payroll is more than $182 million, which is $51 million more than the second-highest team, the Boston Red Sox, and more than the six lowest-payroll teams combined” (Wikipedia Encyclopedia”). The millions of people who are associated with baseball in this country, many of whom had only a vague idea of what was happening, are now asking themselves whether or not the game is being played fairly. Even though teams like the New York Yankees are able to assemble top-notch teams by ignoring the spending limit, a salary cap is necessary to maintain the equal competitive nature of major leag...
Overall, compelling points exist supporting or not supporting a salary cap in baseball. Teams have the benefit of a salary cap existing, and out of that, a balance in free agency forms and a sense of championship parity develops too. On the other side of the spectrum, teams can use the Moneyball method of recruiting and signing players, along with tax implications and revenue sharing to balance out payrolls. The main factor in deciding if a salary cap is appropriate is the factor of fairness among the teams. Therefore, based off the support the research provides, the implementation of a salary cap is necessary.
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.
Another good example of the “richest team winning” did not occur to long ago. Just back in 1997 the Florida Marlins spent over sixty million dollars for their roster.(Weiner, 1) They had all-stars like Kevin Brown, Gary Shefeild, and Bobby Bonnila on their team.
As long has there has been business, Management and Labor have warred against each other for a bigger piece of the pie. Major League Baseball is no different. In the early years of professional baseball the owners controlled the salaries of the players and decided where they could play and what they would be paid. The players were bound to their team by the Reserve Clause that stated, the services of a player will be reserved exclusively for that team for the next season. This resulted in keeping the player’s salaries artificially low because the players were not allowed to offer their services to any other team. The Reserve Clause was in effect for more than One Hundred years of baseball history. It was challenged several times but the owners had won every time, until in 1970 when the St. Louis Cardinals traded outfielder Curt Flood to the Philadelphia Phillies. Flood refused to play for the Phillies and sued to become a free-agent. Flood’s case was in court for several years going all the way to the Supreme Court. He was never able to play in the Major League again. While he did not win his case, he laid the groundwork for a later case that involved two pitchers, Andy Messersmith and Dave McNally who filed a grievance against the league contending that, because they didn't sign contracts with their previous teams they were free agents. The owners and the Players Association agreed to submit to binding, impartial, arbitration in order to settle this case. On December 23, 1975 the arbitrator Peter Seitz ruled in favor of the players and the Reserve Clause was broken, and the era of free agency began in the Major Leagues. In 1976 when free agency began the average player salary was only $52 thousand dollars, but it has increased steadily ever since. By 1990 the average salary for a Major League Baseball player had risen to $589 thousand dollars. This Year baseball will start the 2001 season with an average player salary of more than $2 million, about 40 times higher than the typical wage in 1976 when free agency began.
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.
of skills and talent to make it. If players are just slacking off and taking baseball easy
The signing of Alex Rodriguez proved that Latin American athletes deserved to sign big money contracts just like the other players. Teams are taking are taking advantage of the abundance of talent in Latin America. All major League teams are active in the Dominican Republic. The Dodgers, the first team to move into the Latin American market, scout the area’s talent closely. About one hundred and four of the two hundred and thirty-seven minor-leaguers they had under contract at the start of the year were from that region.
In terms of racial inequality in baseball there have been many eras of integration. Baseball originally is seen as America’s national game belonging to the white men of America. However, throughout history there have been steps taken in recognizing and integrating those groups deemed “less favorable” by the American community. These groups include German immigrants, Irish immigrants, African Americans, Latinos, Native Hawaiians, Native Americans, and Asians. America used the game of baseball as a tool to indoctrinate the American ideals and values of teamwork, working hard, and collaborating for the greater good into the cultures of the “uncivilized world.” These groups used baseball as a medium to gain acceptance into the American community as racially equal counterparts.
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...
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.
The type of data that will be collected throughout this paper will be from Major League baseball from over the past years. There are various types of data for each part of the game, such as hitting and pitching statistics. Applied to that data will be the mathematical formulas and calculations that will help get us the end statistics that are so important to the game and they will show overall how math is an influential part of the game.
Jiobu, Robert M., “Racial Inequality in a Public Arena: The Case of Professional Baseball”. Social Forces , Vol. 67, No. 2 (Dec., 1988), pp. 524-534 Oxford University Press
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...