Testing of regression coefficient

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Reference no: EM1322374

The owners of Major League Baseball (MLB) teams are concerned with rising salaries (as are owners of all professional sports teams). The data below provides the average salary (AVESAL) of the 30 MLB teams for the 2002 season. Also provided is the number of wins (WINS) for each team during the 2002 season. Is there evidence that teams with higher total payrolls tend to be more successful? Justify your answer.

Team	WINS	AVESAL
Anaheim Angels	99	2160054
Baltimore Orioles	67	1855318
Boston Red Sox	93	3633457
Chicago White Sox	81	1791286
Cleveland Indians	74	2106591
Detroit Tigers	55	1562847
Kansas City Royals	62	1832594
Minnesota Twins	94	1430068
New York Yankees	103	4902777
Oakland Athletics	103	1746264
Seattle Mariners	93	3337435
Tampa Bay Devil Rays	55	1131474
Texas Rangers	72	3123803
Toronto Blue Jays	78	1868356
Arizona Diamondbacks	98	3199608
Atlanta Braves	101	3166233
Chicago Cubs	67	2528398
Cincinnati Reds	78	1658363
Colorado Rockies	73	1848858
Florida Marlins	79	1506567
Houston Astros	84	2449680
Los Angeles Dodgers	92	3396961
Milwaukee Brewers	56	1338991
Montreal Expos	83	1497309
New York Mets	75	3192482
Philadelphia Phillies	80	2086812
Pittsburgh Pirates	72	1370088
St. Louis Cardinales	97	2998072
San Diego Padres	66	1292744
San Francisco Giants	95	3030571

Reference no: EM1322374

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