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In an American Economic Review (Dec. 2008) study of college dropouts, one factor

ID: 3439713 • Letter: I

Question

In an American Economic Review (Dec. 2008) study of college dropouts, one factor thought to influence the college dropout decision was expected GPA for a student who studied 3 hours per day. In a representative sample of 307 college students who studied 3 hours per day, the mean GPA was xbar = 3.11 and the standard deviation was s = .66. Of interest is , the true mean GPA of all college students who study 3 hours per day.

a. give an interval that will contain most (at least 75% to apporximately 95%) of the 307 GPAs.

b. if you observe a GPA of 1.25, is it likely that this college student studied 3 hours per day? Explain

Explanation / Answer

a)

By chebyshev's theorem and empirical rule, this refers to within 2 standard deviations from the mean.

Thus, we have the interval

3.11 - 2(0.66) < x < 3.11 + 2(0.66)

or

1.79 < x < 4.43 [ANSWER]

**********************

b)

Yes, as it is outside the interval given in A.

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