Part I: Conduct a Test of Variance
1. The following data represent the 2016 team salary, in millions of dollars, for the 30 Major League Baseball teams, classified by league:
American League Teams Team Salary National League Teams Team Salary
Baltimore Orioles 115.6 Arizona Diamondbacks 70.8
Boston Red Sox 182.2 Atlanta Braves 87.6
Chicago White Sox 98.7 Chicago Cubs 116.7
Cleveland Indians 86.3 Cincinnati Reds 116.7
Detroit Tigers 172.3 Colorado Rockies 98.3
Houston Astros 69.1 Los Angeles Dodgers 223.4
Kansas City Royals 112.9 Miami Marlins 84.6
Los Angeles Angels 146.5 Milwaukee Brewers 98.7
Minnesota Twins 108.3 New York Mets 99.6
New York Yankees 213.5 Philadelphia Phillies 133.1
Oakland Athletics 80.3 Pittsburgh Pirates 85.9
Seattle Mariners 122.7 San Diego Padres 126.4
Tampa Bay Rays 73.7 San Francisco Giants 166.5
Texas Rangers 144.3 St. Louis Cardinals 120.3
Toronto Blue Jays 112.9 Washington Nationals 166.0
At the .05 significance level, is there more variation in the team salaries for the American League?
The null and alternate hypothesis are the following:
H0: σA² ≤ σN² (The subscript A stands for American League and the N stands for National League.)
H1: σA² > σN²
To answer the question, complete the following steps:
(a) In row 1, column A of the Excel worksheet, type the label for the first set of data, ‐American League”. Do not type in the names of all of the teams. Below the label, in column A, type in the data (the team salaries).
(b) In row 1, column B, type the label for the second set of data, ‐National League”. Do not type the names of all of the teams. Below the label, in column B, type in the data (the team salaries).
(c) Click on the Data tab.
(d) Click on Data Analysis (far right of the menu).
(e) In the Data Analysis window, click on F-Test Two-Sample for Variances. Click OK.
(f) In Variable 1 Range, enter A1:A16.
(g) In Variable 2 Range, enter B1:B16.
(h) Check Labels.
(i) Check Output Range and enter D1. Click OK.
(j) To make your decision regarding the null hypothesis, compare the value of F to the value of F Critical one-tail. If F > F-critical, then the decision is ‐Reject the null hypothesis.” If F < F-critical, then the decision is ‐Do not reject the null hypothesis.” In a cell below the statistics, type your decision regarding the null hypothesis.
(k) Based on the hypothesis that has been accepted, answer the question asked at the beginning of the problem. Type your answer in a cell below your decision.
Part II: Conduct an ANOVA Test
The following data represent the number of games won by the 30 Major League Baseball teams in the 2016 season, classified by the team’s total attendance: less than 2.0 million, 2.0 up to 3.0 million, and 3.0 million or more.
Less than 2.0 Games Won 2.0 up to 3.0 Games Won 3.0 or more Games Won
Chicago White Sox 78 Baltimore Orioles 89 Chicago Cubs 103
Cleveland Indians 94 Boston Red Sox 93 Los Angeles Angels 74
Miami Marlins 79 Houston Astros 84 New York Yankees 84
Oakland Athletics 69 Texas Rangers 95 Toronto Blue Jays 89
Tampa Bay Rays 68 Milwaukee Brewers 73 Los Angeles Dodgers 91
Philadelphia Phillies 71 Arizona Diamondbacks 69 St. Louis Cardinals 86
Minnesota Twins 59 Atlanta Braves 68 San Francisco Giants 87
Cincinnati Reds 68 Colorado Rockies 75
Detroit Tigers 86
New York Mets 87
Kansas City Royals 81
Pittsburgh Pirates 78
San Diego Padres 68
Washington Nationals 95
Seattle Mariners 86
At the .05 significance level, is there a difference in the mean number of games won among the three groups?
The null and alternate hypothesis are as follows:
H0: μ1 = μ2 = μ3
H1: At least one treatment mean is different.
To answer the question, click on the sheet 2 tab at the bottom of the worksheet to open a new worksheet and complete the following steps:
(a) In row 1, column A of the Excel worksheet, type the label for the first set of data, ‐Less than 2.0”. Do not type in the names of all of the teams. Below the label, in column A, type in the data (the games won).
(b) In row 1, column B, type the label for the second set of data, ‐2.0 up to 3.0”. Do not type the names of all of the teams. Below the label, in column B, type in the data (the games won).
(c) In row 1, column C, type the label for the second set of data, ‐3.0 or more”. Do not type the names of all of the teams. Below the label, in column C, type in the data (the games won).
(d) Click on the Data tab.
(e) Click on Data Analysis (far right of the menu).
(f) Scroll up and Click on Anova: Single Factor. Click OK.
(g) In Input Range, enter A1:C16.
(h) Check Labels in First Row.
(i) Click on Output Range and enter E1. Click OK. Note: Excel uses the term ‐Between Groups” for treatments and ‐Within Groups” for error; however, they have the same meaning.
(j) To make your decision regarding the null hypothesis, compare the value of F to the value of F Critical one-tail. If F > F-critical, then the decision is ‐Reject the null hypothesis.” If F < F-critical, then the decision is ‐Do not reject the null hypothesis.” In a cell below the statistics, type your decision regarding the null hypothesis.
(k) Based on the hypothesis that has been accepted, answer the question asked at the beginning of the problem. Type your answer in a cell below your decision.