Descriptive Statistics Paper

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Running head: DESCRIPTIVE STATISTICS PAPER

Descriptive Statistics Paper

Mickey Gahan, Tony Goss, Gerry Camacho and Rob Jacobson

University of Phoenix

Research Process Paper

Few sports have had the social impact that baseball has had over the years. Baseball has long been the all-American pastime. Baseball parks in most major cities across the U.S. attract families including children with dreams of becoming a baseball player. Although ballpark attendance is near 75 million, the cost to operate a major league team is substantial. Salaries alone for 2005 were over 2 billion (University of Phoenix, 2004). This number has increased nearly five-fold over the previous 10 years (USA Today, 2008). People pay to see the best athletes in all sports, not just baseball. Baseball owners analyze data to determine if paying their players higher salaries will pay off by increasing the attendance in ballparks. The data collected in the Major League Baseball Data set is typical data which owners will analyze to determine if paying higher salaries will increase overall profitability. Purpose of Research

The purpose of this research is to determine whether or not increasing the budget for player salaries will increase the attendance in ballparks. Baseball is not unlike any other business where the name of the game is to make money. Players’ salaries are a large part of the overall expenditures owners face. A baseball owner must make critical decisions when determining the salaries to pay players. For example, in 2005 the New York Yankees paid an estimated 208 million in player salaries. This same year the Yankees had a league leading attendance of over 4 million baseball fans (ESPN, 2008). This may be a mere coincidence or may be a smart business decision by the New York Yankees. The budget for player salaries can have a huge impact on the organization. The organization will suffer revenue loss if fewer fans come to the games. Inevitably a smaller salary will attract less qualified players. The question then faced is if the fans will come to see less talented players who have less of a chance of winning. Alternatively there can be problems with increasing the salary budget to a point that it affects the price of tickets and other items sold. Fans want to see the best players, but how much are they willing to spend comes into question. The ideal situation for baseball organizations is to optimize player salaries to maximize ballpark attendance. Problem Definition

Many factors go into ballpark attendance. Some of these factors may include the team’s record, stadium size, and cost associated with the game experience. If the team is has a track record of success, the level of attendance can be greatly impacted. Although some fans go to the ballpark for the baseball experience, winning teams will likely see higher attendance. Ballpark size will also have an impact on attendance. Although the New York Yankees attendance in 2005 was over 4 million fans, Yankee stadium holds over 40% more fans than does the Boson Red Sox stadium (University of Phoenix, 2004). Stadium size needs to be taken into consideration when analyzing attendance. Finally, the associated costs with attending a baseball game must be taken into consideration. The baseball experience includes more than just the cost of the admission ticket. Parking, food and souvenirs can make going to the ballpark a fairly expensive trip. These influences aside, this analysis will prove that ballpark attendance is higher for teams with higher paid players. The correlation between the salary budget and how many fans attend the games will be analyzed. Research Hypothesis

A Research Hypothesis is used to test specific predictions about independent and dependent variables. This particular research project pretends to determine if the salaries paid to these “all star” higher paid players is directly...
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