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Chapter 14 - Bootstrap Methods and Permutation Tests - WH Freeman

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<strong>14</strong>-36 CHAPTER <strong>14</strong> <strong>Bootstrap</strong> <strong>Methods</strong> <strong>and</strong> <strong>Permutation</strong> <strong>Tests</strong><br />

page <strong>14</strong>-19) is so far from normal that we are reluctant to use the bootstrap t<br />

or percentile confidence intervals. Now we will bootstrap the correlation coefficient.<br />

This is our first use of the bootstrap for a statistic that depends on<br />

two related variables. As with the difference of means, we must pay attention<br />

to how we should resample.<br />

Major League Baseball (MLB) owners claim they need limitations on<br />

EXAMPLE <strong>14</strong>.9<br />

player salaries to maintain competitiveness among richer <strong>and</strong> poorer<br />

teams. This argument assumes that higher salaries attract better players. Is there a<br />

relationship between an MLB player’s salary <strong>and</strong> his performance?<br />

Table <strong>14</strong>.2 contains the names, 2002 salaries, <strong>and</strong> career batting averages of 50<br />

r<strong>and</strong>omly selected MLB players (excluding pitchers). 9 The scatterplot in Figure <strong>14</strong>.15<br />

suggests that the relationship between salary <strong>and</strong> batting average is weak. The sample<br />

correlation is r = 0.107. Is this small correlation significantly different from 0? To find<br />

out, we can calculate a 95% confidence interval for the population correlation <strong>and</strong> see<br />

whether or not it covers 0. If the confidence interval does not cover 0, the observed<br />

correlation is significant at the 5% level.<br />

TABLE <strong>14</strong>.2<br />

Major League Baseball salaries <strong>and</strong> batting averages<br />

Name Salary Average Name Salary Average<br />

Matt Williams $9,500,000 0.269 Greg Colbrunn $1,800,000 0.307<br />

Jim Thome $8,000,000 0.282 Dave Martinez $1,500,000 0.276<br />

Jim Edmonds $7,333,333 0.327 Einar Diaz $1,087,500 0.216<br />

Fred McGriff $7,250,000 0.259 Brian L. Hunter $1,000,000 0.289<br />

Jermaine Dye $7,166,667 0.240 David Ortiz $950,000 0.237<br />

Edgar Martinez $7,086,668 0.270 Luis Alicea $800,000 0.202<br />

Jeff Cirillo $6,375,000 0.253 Ron Coomer $750,000 0.344<br />

Rey Ordonez $6,250,000 0.238 Enrique Wilson $720,000 0.185<br />

Edgardo Alfonzo $6,200,000 0.300 Dave Hansen $675,000 0.234<br />

Moises Alou $6,000,000 0.247 Alfonso Soriano $630,000 0.324<br />

Travis Fryman $5,825,000 0.213 Keith Lockhart $600,000 0.200<br />

Kevin Young $5,625,000 0.238 Mike Mordecai $500,000 0.2<strong>14</strong><br />

M. Grudzielanek $5,000,000 0.245 Julio Lugo $325,000 0.262<br />

Tony Batista $4,900,000 0.276 Mark L. Johnson $320,000 0.207<br />

Fern<strong>and</strong>o Tatis $4,500,000 0.268 Jason LaRue $305,000 0.233<br />

Doug Glanville $4,000,000 0.221 Doug Mientkiewicz $285,000 0.259<br />

Miguel Tejada $3,625,000 0.301 Jay Gibbons $232,500 0.250<br />

Bill Mueller $3,450,000 0.242 Corey Patterson $227,500 0.278<br />

Mark McLemore $3,150,000 0.273 Felipe Lopez $221,000 0.237<br />

Vinny Castilla $3,000,000 0.250 Nick Johnson $220,650 0.235<br />

Brook Fordyce $2,500,000 0.208 Thomas Wilson $220,000 0.243<br />

Torii Hunter $2,400,000 0.306 Dave Roberts $217,500 0.297<br />

Michael Tucker $2,250,000 0.235 Pablo Ozuna $202,000 0.333<br />

Eric Chavez $2,125,000 0.277 Alexis Sanchez $202,000 0.301<br />

Aaron Boone $2,100,000 0.227 Abraham Nunez $200,000 0.224

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