A Sample Hypothesis Testing Paper Do Major League Baseball teams with higher salaries win more frequently than other teams? While many people believe that bigger payroll budgets win games, the point varies depending on the situation. "The performances of individual players vary greatly from year to year, preventing ownership from guaranteeing success on the field. Team spending is certainly a component of winning, but no team can buy a championship." (Bradbury). For some, it's hard not to root for the lower-paid teams. If teams with big money, like Goliath, are supposed to always win, it's hard not to root for David. This article will discuss the effects of personnel budgets on the winning percentage of the 30 major league baseball teams in 2007. There are 30 major league baseball teams divided into two divisions. Payrolls for the 30 2007 Major League teams are based on a 40-man roster and include salaries and prorated shares of signing bonuses, earned incentive bonuses, non-cash compensation, unexercised option buyouts, and cash transactions . There may be some cases where portions of salaries are deferred or discounted to reflect current values. The following list is in order of highest paycheck. The graph on the left shows payroll and the graph on the right shows the number of wins for 2007. According to the graphs, if a team is in the top bracket of payroll, it is likely to have a good season, after the top eight of the ranking. the payroll is a bit scattered. So if they want to have a strong chance of winning, you have to be in the top eight in the standings. A team that challenged the payroll and is still only six wins shy of the highest payroll and the team is Arizona that has the 23rd highest payroll and ranked 5th in wins. Baseball teams with higher salaries actually win more games, but only up to a point—in the case of the 2007 season, it's the first eight. 5-Step Procedure List the null hypothesis and the alternative hypothesis The question “do baseball teams with higher salaries win more?” will be transformed for testing purposes into the verbal statement of the hypothesis, baseball teams with larger payrolls do not win more than teams with smaller payrolls. This leads to numerical hypothesis statements regarding the null and alternative hypotheses. Null hypothesis: I have=1  2