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ACT scores of a sample of UTC students are shown below. Student ACT Score A 22 B 28 C 20 D 21 E 28 F 23 G 26 a. Compute the mean and the variance. B. At 95% confidence, test to determine whether or not the variance of the ACT scores of the population of UTC students is significantly more than 8.

Answer :

Solution :

a). Let  x denotes ACT scores.

ACT scores = [tex]$\{ 22,28,20,21,28,23,26 \} ; n = 7$[/tex]

Mean, [tex]$(\overline x)=\frac{\sum x_i}{n}$[/tex]

                [tex]$=\frac{168}{7}=24$[/tex]

Sample variance, [tex]$S^2=\frac{1}{n-1}\left(\sum x_i^2-n\overline x^2 \right)$[/tex]

                                  [tex]$=\frac{1}{6}(4098-7 \times 24^2)$[/tex]

                                   [tex]$=\frac{66}{6}$[/tex]

                                   = 11

b). To test whether or not variance of ACT scores of population (say [tex]$\sigma^2$[/tex]) of the UTC students is significantly more than 8.

Consider the hypothesis :

[tex]$H_0: \sigma^2 \leq8$[/tex]  vs [tex]$H_a: \sigma^2 >8$[/tex]

It is a right tailed test and α = 0.05

We have

[tex]$x^2_{n-1} = \frac{(n-1)s^2}{\sigma^2}$[/tex]

So test statics is

[tex]$x^2_7=\frac{(7-1)11}{8}$[/tex]

   [tex]$=\frac{6 \times 11}{8}$[/tex]

   = 8.25

Since our [tex]\text{test statistics is less than the critical value }[/tex]and it falls in a acceptation region, hence we fail to reject [tex]$H_0$[/tex] and conclude that variance is not greater than 8 significantly.

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