Football salaries. Football owners are constantly in competition for good players. The more wins, the more likely that the team will provide good business returns for the owners. Of course, the resources that each of the 32 teams has in the National Football League (NFL) vary.

Does the size of the payroll matter? Here is a scatterplot and regression showing the association between team salaries in the NFL in 2006 and number of wins.

a) State the hypotheses about the slope.

b) Perform the hypothesis test and state your conclusion in context.

Transcribed Image Text:

Wins 14+ 12- 10+ 8+ 6. 9 4. 2+ 0+ + 70 80 90 100 110 120 130 Salary ($M) Predictor Coeff SE(Coeff) t-ratio P-value Intercept 1.783 3.964 0.45 0.6560 Salary ($M) 0.062 0.039 1.58 0.1244 s=2.82 R-Sq = 7.7%