A study was conducted by the sports department of a national network television station in which the objective was to determine whether a difference exists between median annual salaries of National Basketball Association (NBA) players, National Football League (NFL) players, and Major League Baseball (MLB) players. The analyst in charge of the study believes that the normal distribution assumption is violated in this study. Thus, she thinks that a nonparametric test is in order.
The following summary data have been collected:
a. Why would the sports department address the median as the parameter of interest in this analysis, as opposed to the mean? Explain your answer.
b. What characteristics of the salaries of professional athletes suggest that such data are not normally distributed? Explain.
c. Based on these data, what can be concluded about the median salaries for the three sports? Test at an α = 0.05. Assume no ties.
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