Major League Baseball Correlation Analysis
Submitted by bhagat7 on 06/30/2008 05:21 PM
- Category: Sports
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Major League Baseball Correlation Analysis
Major League Baseball Correlation Analysis
In America the favorite past time sport is baseball. Every year billions of dollars are spent on salaries for our nations major league baseball players. In 2000, the payroll amount was $1,686,000,000, which is a 12% increase from 1999 ($1,500,000,000). Statistics have shown that the best players in the league are highly compensated. It is assumed that teams with high payrolls is an indicator that they have reputable players in their roster, which in turn would be reflected in the number of games they win in a season. Meaning, by having the best player(s) they would have a good winning record.
To test this assumption, I have conducted a study to determine if there is a direct correlation between a team¡¦s payroll and the number of games they win in a season. My analysis included 16 teams (data points) out of the 30 teams that exist in Major League Baseball in 2000.
After collecting the relevant information needed for my study, I analyzed the data and charted the annual payroll amount against the winning record for that respected team. The research indicates the assumption is false. There is no direct correlation between a team¡¦s payroll and their total wins for a season. An example of this is with the Florida Marlins and the San Diego Padres. The Padres¡¦s payroll is 64% ($54,900,000) higher than the Marlins ($19,000,000), however the Marlins won 3 games more than the Padres. This is a clear example showing that the higher the payroll does not necessarily equate to having the best record in the league.
If there were a direct correlation between the two factors, you would see a positive upward slope in the chart. However, the scattering of points suggests there is a variance in the relationship between a teams payroll and its winning status. Therefore you can not predict that a team with the highest payroll would have the best record in Major League Baseball.
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