Testing Hypotheses: One Sample Tests

The Bay City Bigleaguers, a semiprofessional baseball team, have the player who led the league in batting average for many years. For thé past several years, Joe Carver’s batting average has had a mean of .343, and a standard deviation of .018. This year, however, Joe’s average was only .306. Joe is renegotiating his contract for next year, and the salary he will be able to obtain is highly dependent on his ability to convince the team’s owner that his batting average this year was not significantly worse than in previous years. If the owner is willing to use a 0.02 significance level, will Joe’s salary be cut next year?

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