Question

The following table gives the total 2004 payroll (on the opening day of the season, rounded to the nearest

million dollars) and the percentage of games won in 2004 by each National League team.

D’backs

Braves

Cubs

Reds

Rockies

Marlins

Astros

Dodgers

Payroll

(in millions)

70

90

91

47

65

42

75

93

Percentage

of Wins

31.5

59.3

54.9

46.9

42.0

51.2

56.8

57.4

Brewers

Expos

Mets

Phillies

Pirates

Cards

Padres

Giants

Payroll

(in millions)

28

41

97

93

32

83

55

82

Percentage

of Wins

41.6

41.4

43.8

53.1

44.7

64.8

53.7

56.2

Use a 0.05 significance level to determine if there’s a correlation between payroll and percentage of games won.

Answer 1

The hypothesis being tested is:

H₀: β₁ = 0

H₁: β₁ ≠ 0

Source	SS	df	MS	F	p-value
Regression	260.5883	1	260.5883	4.24	.0585
Residual	860.0111	14	61.4294
Total	1,120.5994	15

The p-value is 0.0585.

Since the p-value (0.0585) is greater than the significance level (0.05), we fail to reject the null hypothesis.

Therefore, we cannot conclude that there’s a correlation between payroll and percentage of games won.