The president of a university believes the entering class this year has an average ACT score higher than previous years.  The average ACT score previously had been 23.  He took a sample of 100 students from this year’s entering class and found their sample mean ACT score is 26 with a sample standard deviation of 5.  Is there evidence the population mean ACT score is greater than 25 at the 0.01 significance level? Referring to Scenario 3-2, what is your statistical conclusion if you conduct a one-tailed test at a 0.01 significance level?

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Scenario 3-2

The president of a university believes the entering class this year has an average ACT score higher than previous years.  The average ACT score previously had been 23.  He took a sample of 100 students from this year’s entering class and found their sample mean ACT score is 26 with a sample standard deviation of 5.  Is there evidence the population mean ACT score is greater than 25 at the 0.01 significance level?

Referring to Scenario 3-2, what is your statistical conclusion if you conduct a one-tailed test at a 0.01 significance level?

Expert Solution
Step 1

Given information-

Population mean, μ = 25

Sample size, n = 100

Sample mean, M = 26

Sample standard deviation, S.D = 5

Significance level, α = 0.01

For this study we will use right-tailed t-test statistics.

Given Hypothesis is-

Null Hypothesis, H0: μ ≤ 25

Alternate Hypothesis, Ha: μ > 25

Since here population standard deviation is unknown so using t-test statistics.

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