2. A charter school system sets a standard for their schools’ graduation and ret

Question

2. A charter school system sets a standard for their schools’ graduation and retention rates in order for those schools to receive a certain amount of funding. Suppose the graduation rate established by the school system is a minimum of 67% in order for the schools to receive priority funding the following academic year. One of the schools is concerned that their graduation rate may be too low. Assume that at this particular school, only 300 of its 498 students are expected to graduate.

Conduct a formal test to determine if there is a significant difference between the graduation rate at the particular school and the standard set by the school system. Use an alpha level of 0.05. Interpret your results.

Explanation / Answer

here n=498; p=0.67

hence std error of mean =(p(1-p)/n)1/2 =0.021

also phat=300/498 =0.602

hence test stat z=(phat-p)/std error =(0.602-0.67)/0.021 =-3.2078

for above test stat p value =0.0007

as p value is less then 0.05 level we reject null hypothesis and conclude that graduation rate of school is lower then 67%.

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