A model that allows major league baseball player salary to differ by position is

where outfield is the base group.
(i) State the null hypothesis that, controlling for other factors, catchers and outfielders earn, on average, the same amount. Test this hypothesis using the data in MLB 1 .RAW and comment on the size of the estimated salary differential.
(ii) State and test the null hypothesis that there is no difference in average salary across positions, once other factors have been controlled for.
(iii) Are the results from parts (i) and (ii) consistent? If not, explain what is happening.

Transcribed Image Text:

log(salary,-A, + β.years + β2garnesyr + ßbavg + β,hrunsvr B, catcher+u