The president of a mid-sized state university has proposed lowering tuition rates in order to increase the school’s overall graduation rates (meaning she expects the two measures will be negatively associated with each other). She collects data on other similar universities, rating universities as “high” on tuition (above-average tuition costs) or “low” (below average tuition), as well as on their proportion of students who graduate in six years (categorizing with those graduating more than half of their students as “high” and those graduating fewer than half as “low”). A bivariate table with these data is below. Calculate the gamma and then write a sentence or two interpreting what it suggests about the relationship. Is there support for the president’s hypothesis?
The president of a mid-sized state university has proposed lowering tuition rates in order to increase the school’s overall graduation rates (meaning she expects the two measures will be negatively associated with each other). She collects data on other similar universities, rating universities as “high” on tuition (above-average tuition costs) or “low” (below average tuition), as well as on their proportion of students who graduate in six years (categorizing with those graduating more than half of their students as “high” and those graduating fewer than half as “low”). A bivariate table with these data is below. Calculate the gamma and then write a sentence or two interpreting what it suggests about the relationship. Is there support for the president’s hypothesis?
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Graduation Rate by Tuition Rate |
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Tuition Rate |
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Graduation Rate |
Low |
High |
Totals |
|
Low |
52 |
40 |
92 |
|
High |
80 |
125 |
205 |
|
Totals |
132 |
165 |
297 |
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