1) Salaries in the NBA are very complicated, with some caps in place.However, ev
ID: 3174934 • Letter: 1
Question
1) Salaries in the NBA are very complicated, with some caps in place.However, even with limits being placed on salaries some players still receive significant salaries. Andrew Wiggins received an $11.2 million contract with the Cleveland Cavaliers, and Jabari Parker has an approximate possible salary of $10.1 with the Milwaukee Bucks.Suppose a random sample of 26 NBA players report their potential annual income at the start of the 2014 season and the results show a mean of $4.8 million and a standard deviation of $2.6 million. (information courtesy of http://www.spotrac.com/draft-tracker/nba)
a.Estimate with 95% confidence the mean of the annual income based on the report. (Specify the population parameter of interest, the conditions, the sample evidence, and the interval limits). (10 points)
Explanation / Answer
a. t table value for 25 df= 2.060
So E=t*sd/sqrt(n)=1.05
Hence CI=mean+/-E=4.8+/-1.05=(3.75,5.85)
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