The effort to reward city students for passing Advanced Placement tests is part of a growing trend nationally and internationally. Financial incentives are offered in order to lift attendance and achievement rates. One such program in Dallas, Texas, offers $100 for every Advanced Placement test on which a student scores a three or higher (Reuters, September 20, 2010). A wealthy entrepreneur decides to experiment with the same idea of rewarding students to enhance performance, but in Chicago. He offers monetary incentives to students at an inner-city high school. Due to this incentive, 122 students take the Advancement Placement tests. Twelve tests are scored at 5, the highest possible score. There are 49 tests with scores of 3 and 4, and 61 tests with failing scores of 1 and 2. Historically, about 100 of these tests are taken at this school each year, where 8% score 5, 38% score 3 and 4, and the remaining is failing scores of 1 and 2.
In a report, use the sample information to:
1. Provide a descriptive analysis of student achievement on Advanced Placement before and after the monetary incentive is offered.
2. Conduct a hypothesis test that determines, at the 5% significance level, whether the monetary incentive has resulted in a higher proportion of scores of 5, the highest possible score.
3. At the 5% significance level, has the monetary incentive decreased the proportion of failing scores of 1 and 2?
4. Assess the effectiveness of monetary incentives in improving student achievement.

  • CreatedJanuary 28, 2015
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