Question

What types of test would I run to solve these? Z test for two Means, Chi squared test, T test, F test....etc

The organization for which you are working in your study of private university tuition has been quite impressed with your work. Its CEO has a relative who works for the Major-League Baseball Players’ Union. Your services and abilities have been recommended to union leadership. You have been asked to perform a study that will result in a comparison of the average salaries per player for major league baseball teams. This information will be needed as historical data to be used in upcoming labor negotiations. The average player salary data for two recent years for all 30 major league baseball teams is shown below in appendix two. At the 1% level of significance, has the average player salary increased from the first year to the second year? For the purposes of the study, you may assume that this data is sample data drawn from a much larger population of teams. Once again, should the procedure you choose to accomplish this task allow for it, construct a 99% confidence interval for the difference in the mean salary per player from year one to year two. Explain the meaning of this interval.

Answer 1

Since you have to test whether the average player salary increased from the first year to the second year. So you need to use paired means test. As the sample size is 30,

So you need to apply the Paired Sample T-Test