The Major League Baseball strike of 1984-85 was essentially over money. The owne

Question

The Major League Baseball strike of 1984-85 was essentially over money. The owners wanted a salary cap on player salaries which have risen exponentially since the 1970’s. The players countered, however, that they were underpaid. For this discussion you will research the 2012 average player salary, the median salary, and the minimum player salary. Why are these values so different? You will discuss how it is possible to reconcile the concerns of the owners over higher salaries with the players’ claims that they are underpaid. What would you argue if you represented the owners? How would you respond if you represented the players?

Explanation / Answer

Given that minimum player salary 480000

This means that minimum salary differs from mean by 3213479-480000 = 2733479, which is on very high side

Also median 1075000 is very much below 3213479 which implies some players are paid very high and hence mean is shown high.

I.e. the distribution is not symmetrical but left skewed.

Owners' concern can be overcome by making the differences between the payments reasonable without expending extra amount.

i.e. raise the salarieis of really poor paid people, and fix the high paid according to their performance.

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From players, if low paid he has to be done justice to get increase as difference from average is not reasonable.

For highly paid players, fixing target and paying incentive for success instead of average salary will be motivating and boost their morale and performance.

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