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The economic structure of Major League Baseball allows some teams to make substantially more money than others, which in turn allows some teams to spend
The economic structure of Major League Baseball allows some teams to make substantially more money than others, which in turn allows some teams to spend much more on player salaries. These teams might therefore be expected to have better players and win more games on the field as a result. Suppose that after collecting data on team payroll (in millions of dollars) and season win total for 2010, we find a regression equation of Wins = 71.87 + 0.101Payroll - 0.060x League where League is an indicator variable that equals 0 if the team plays in the National League or 1 if the team plays in the American League. (Hint: Write down the two equations) Suppose we plotted the data and drew the regression lines for National League and American League teams. What would be the slope of the line for American League teams? 0.060 0.941 0.101 0 71.81
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