Formulating a Hypothesis

Formulating a Hypothesis
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Formulating a Hypothesis
Team C will formulate a Hypothesis testing using the selected data set of Major League Baseball (Lind, Marchal, & Wathen, 2008). The reason for choosing these data set is because of data availability such as player’s salaries and wins. A hypothesis statement will first be formulated from which the five-step hypothesis test procedure will be performed utilizing the data set information at hand. The team will then have to formulate verbal statements and numerical charts regarding the issue at hand. The steps to be used by the team includes; formulation of a testable hypothesis, designing the experiment, data collection and making the decision (Doane & Seward, 2007). This paper will attempt to understand the relationship between the salaries earnings of the Major League baseball players and the number of wins for the team. The aim of the hypothesis testing is to determine whether the salary of players is a significant predictor of the rate of wins a team can have. This will be accomplished by means of regression analysis.
When attempting to formulate the hypothesis testing, regression analysis of the two variables will be utilized. In particular, the hypothesis testing procedure will involve testing the slope of the regression line. If the slope of the regression line is zero, then salary happens not to be a useful predictor of a team’s number of wins in the league. On the other hand, if the slope is not zero, then salary is a useful predictor of the number of wins. This test will be conducted by means of an ANOVA table where salary is taken as a covariate (Trochim, 2006). This is done by evaluating the ratio of the regression mean square values and the error. A high ration value indicates existence of a significant relationship while a low ratio value indicates an insignificant relationship or no relationship at all (Doane & Seward, 2007).
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Numerical and Verbal Hypothesis Statement
It is believed that each team’s total wins is related to the salaries being earned by players of the Major League Baseball teams., the hypothesis statement Based on this belief is that there is significant correlation between salaries earned by players in Major League Baseball and the number of wins. A simple linear regression analysis has been utilized to test this hypothesis. The null hypothesis states that or there is no significant correlation between salaries and wins or a higher number of wins do not correlate to a higher salaries (Doane & Seward, 2007).
The alternative hypothesis states that there is significant correlation between salaries and wins and a higher sal...