Major League Baseball Salaries Averaged $3

question 141

Multiple Choice

Major league baseball salaries averaged $3.26 million with a standard deviation of $1.2 million in 2009. Suppose a sample of 100 major league players was taken. What was the standard error for the sample mean salary?

• A) $0.012 million
• B) $0.12 million
• C) $12 million
• D) $1,200.0 million

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Definitions:

Consumer Price Index

A statistical estimate that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, calculated by taking price changes for each item in the predetermined basket of goods and averaging them.

Inflation Rate

The percentage increase in the price level of goods and services in an economy over a period of time, indicating the rate at which purchasing power is eroding.

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, as an indicator of inflation or deflation.

GDP Deflator

A measure of the level of prices of all new, domestically produced, final goods and services in an economy, used to adjust nominal GDP to calculate real GDP.