Question

In 2007, baseball players made on average $1.8 million. Using these randomly sample 12 players (All in Millions of Dollars) from 2011 , Is there evidence that salaries are now different? Assume a 5% significance level

$2.7, 2.9, 1.5, 2.2, 2.5, 2.0, 1.7, 2.9, 2.8, 2.6, 0.8, 2.7

Provide the following in your final analyses: the distribution to be used and why; all assumptions required for this study and if each assumption is met or not (if an assumption is not met, explain what you would do to correct the assumption violation); null and alternate hypotheses; the test statistic (rounded to four decimal places); the p-value (rounded to 4 decimal places); the decision to reject the hypothesis or not; and a conclusion in context of the study.

Answer 1

calculate mean and standard deviation of data given:

here we don't know the value of population standard deviation so we use t test here.

assumptions are random sampling, normality of data distribution, adequacy of sample size all assumptions are met.

hypothesis testing: