Answer:
See below for answers and explanations
Explanation:
Part A:
Given:
Pooled sample size:
Sample size (with academic scholarships):
Sample size (no academic scholarships):
Population standard deviations: Unknown
Sample mean (with academic scholarships):
Sample mean (no academic scholarship):
Sample standard deviation (with academic scholarships):
Sample standard deviation (no academic scholarships):
Degrees of freedom:
Significance level:
Decide which test is most appropriate to conduct:
Therefore, we will conduct a 2-sample t-test assuming our conditions are satisfied.
List null and alternate hypotheses:
-> There's no difference in ACT scores between students with and without an academic scholarship
-> There's a difference in ACT scores between students with and without an academic scholarship (it's two-sided)
Determine the value of the test statistic:
We will use the formula
to compute the test statistic
. Therefore, the test statistic is
Calculate the p-value:
Because the test is two-sided,
Interpret p-value and conclude test:
Given our significance level is
, since
, we reject the null hypothesis and conclude that there is significant evidence that suggests that there is a difference in ACT scores between students with and without an academic scholarship (it's more likely that the alternate hypothesis is true)
Part B:
The formula for a confidence interval for the difference in 2 population means is
where
is the difference of the 2 sample means and
is the critical score for the desired confidence level.
The critical score for our 98% confidence interval would be
Therefore, our 98% confidence interval for the difference in the ACT scores between students with and without an academic scholarship is
This means that we are 98% confident that the true difference in the ACT scores between students with and without an academic scholarship is contained within the interval