Student federal loans: A Brookings Institution report, "Are College Students Borrowing Blindly?", suggests that undergraduate students may be confused about their debt. For example, among all first-year undergraduate students with federal loans, 14 percent said they didn't have any student debt at all. Let's assume this is true for the population of undergraduate students who have federal loans and set up a simulation to randomly sample 50 students from this population. For each sample we calculate the proportion of students who report having no student debt at all. We'll repeat this process 300 times. The dotplot of the resulting 300 proportion calculations is displayed below. (Source: Akers, B., and Chingos, M. M. (2014). Are College Students Borrowing Blindly?) 8 0.00 0.05 0.10 0.15 0.20 0.25 0.30 Proportion No Student Debt Now suppose that we randomly select another sample of 50 students from this population. We find that 16% (8 out of 50) report having no student debt. What can we conclude from the sampling distribution? This result is surprising because we expect only 14% of the sample to report having no student debt. This result is surprising because it is unlikely that 16% of a random sample will report having no student debt if we choose from a population with only 14% who report having no student debt. This result is not surprising because random samples are expected to vary. This result is not surprising because we expect to see many samples with more than 16% who report having no student debt