Do people who need loans to go to college receive better scholarship assistance? In a review of 1620 students, 899 of them did not borrow any money to go to college. The average scholarship amount received by this group was $3890. The other 721 students reviewed received an average of $4320. In other words, there was a difference of $430 between the two groups which seems reasonably large. A group of scholarship coordinators uses this difference to state that they do a pretty good job of giving some additional scholarship assistance to students who have to take out loans. The standard deviation of the difference is $340. (Note: This is the SD - not the standard error. So we do not have to divide by the square root of n.)

Do a complete hypothesis test, demonstrating your understanding of each step. (You don't have to explain in extreme detail, just demonstrate your understanding of the steps involved). Use the standard value for alpha.

Your answer should be done in the traditional ("older") hypothesis test format. That is, do not use the confidence interval method for this question. You will do so in the question below.

In addition, complete your analysis by answering the following in non-statistical terms: Does this data support the coordinators' statement? This is because, as we have discussed previously, at the end of the day, the analyst must be able to describe their statistical calculations in "real world" language to assist non-experts in making their decisions.

Friendly Hint: Note that we are looking at two groups to see if the difference of $430 is different from 0, or if it isn't.