IB Math Studies Internal Assessment:

What is the Relationship between SAT Scores and Family Income of

the Test Takers around the World?

Exam Session: May 2011

School name: International School Bangkok

Teacher: Mr. Demille

Date: December 8th, 2010

Course: IB Math Studies

Word Count: 1,832

Name: Billy Egnehall

 What is the Relationship between SAT Scores and Family Income of the Test
Takers around the World?

Introduction

The SAT examination is mostly in today’s world of academics, a

requirement of getting accepted into collage. Not only is it enough to take the
examination but the student has to pass with an average score or above to even
have his/her application be considered. Many students around the world
recognize this and therefore apply to prep schools for the SAT or their parents
send them to a higher educational institution for that purpose. The prep schools
such as Princeton are not cheap however as it helps give advice on how to best
tackle the SAT examination, neither are higher educational institutions. Also it
can be considered a luxury service by some middle class and low class societies
in the world to be able to attend either one. This being said, the SAT prep course
and higher educational institutions are, as a result, aimed at the high class
societies in the world or those who can afford it. If this is true, it would put
families with a higher income at an advantage for their children to get accepted
into collage compared to families who cannot afford for their children to take the
course or school fee and learn the advice of how to pass the SAT examination
with a high score. Are the collages which students aim to be accepted into for a
better education really based on which families can afford for their children to
take the SAT prep course or learn at a higher educational institution? The data
collected from Collage Board in year 2007 was analyzed to determine whether
there is a relationship between SAT scores and family income of the test takers
around the world (Rampell).

Statement of Task

The main purpose of this investigation is to determine whether there is a

relationship between SAT scores and family income of the test takers around the
world. The type of data that will be collected is the SAT scores and family income
of the two-thirds of test takers who voluntarily reported it to collage board when
signing up for the SAT examination worldwide. The SAT scores are used to
determine how high of a score the test taker got and family income to determine
the possibility to send their children to SAT prep schools or better educational
institutions. The data used to generate the data breaks down the average score
for ten different income groups of $20,000 range.
Plan of investigation

I am investigating the relationship of SAT scores and family income of the test
takers around the world. I have collected data on SAT scores and family income of the
test takers around the world. With the collection of data that I have acquired, a number
of mathematical processes were used to analyze the data: a scatter plot of the data,
calculation of the least squares regression line and correlation coefficient. I am going to
do a χ2 test on the data to show the dependence of SAT scores and family income of the
test takers around the world.
 Mathematical Investigation

Collected Data

Table 1: Mean SAT scores per section categorized in family income of test taker
in 2007
Family income of test Percentage of test takers
takers within each family income Critical
group reading Math Writing

Less than $10,000 4% 427 451 423 1301

$10,000–$20,000 8% 453 472 446 1371

$20,000–$30,000 6% 454 465 444 1363

$30,000–$40,000 9% 476 485 466 1427

$40,000–$50,000 8% 489 496 477 1462

$50,000–$60,000 8% 497 504 486 1487

$60,000–$70,000 8% 504 511 493 1508

$70,000–$80,000 9% 508 516 498 1522

$80,000–$100,000 14% 520 529 510 1559

More than $100,000 26% 544 556 537 1637

This bottom row, the “More than $100,000” I am going to consider as an

outlier therefore excluded in all calculations as it goes from $100,000 up to the
millions of dollar of income which is too wide of a range to include into the
calculations of this assessment.
 Graph 1: Average SAT Score Vs. Family Income
1600
1559
Overall Averaged SAT Score (top score 2400)

1550 1522
1508
1487
1500
1462

1450 1427

1400
1371 Average SAT score
1363

1350
1301
1300

1250
0 20 40 60 80 100
Family Income of SAT Takers ($ in Thousands)

Graph 1 shows the average SAT score Vs. family income of test taker. As of now,
there seems to be very strong positive correlation. It does appear that the SAT
scores improve as the family income increases. (Graph was generated through
Microsoft Excel)
Calculation of the Least Squares Regression

The Least Square regression identifies the relationship between the

independent variable, x, and the dependent variable, y. It is given by the
following formula:

where and

Table 2: Values of Least Squares Regression

x y xy x2
15000 1301 19515000 225000000
25000 1371 34275000 625000000
35000 1363 47705000 1225000000
45000 1427 64215000 2025000000
55000 1462 80410000 3025000000
65000 1487 96655000 4225000000
75000 1508 113100000 5625000000
85000 1522 129370000 7225000000
95000 1559 148105000 9025000000
∑ = 495000 ∑ = 13000 ∑ = 733350000 ∑ = 33225000000
= 55000 = 1444. = 79444444.44 = 3691666667
These are the calculated values used in finding the Least Squares Regression

2
Calculation of Pearson’s Correlation Coefficient

Pearson’s Correlation Coefficient indicates the strength of the relationship

between the two variables (SAT scores and family income of test taker). It is
given by the following formula:

where , and

Table 3: Values of Pearson’s Correlation Coefficient

x y
15000 1301 1600000000 20576.30864
25000 1371 900000000 5394.08642
35000 1363 400000000 6633.197531
45000 1427 100000000 304.308642
55000 1462 0 308.1975309
65000 1487 100000000 1810.975309
75000 1508 400000000 4039.308642
85000 1522 900000000 6014.864198
95000 1559 1600000000 13122.97531
∑ = 495000 ∑ = 13000 ∑ = 6000000000 ∑ = 58204.22222
= 55000 = 1444.
These are the calculated values used in finding the Correlation Coefficient.

0.9819360378
 The calculation suggests that the strength of the
association of the data is very strong since 0.90 r2 < 1.

I compared this value of with the standard table of coefficient of

determinations which places it in the “very strong” category (Whiffen).

Graph 2: Average SAT Score Vs. Family Income

Linear Fit line
1600
Overall Averaged SAT Score (top score 2400)

1559
1550 1522
1508
1487
1500
1462

1450 1427

1400 1371 1363 Average SAT score

Linear (Average SAT score)
1350
1301
1300

1250
0 20 40 60 80 100
Family Income of SAT Takers ($ in Thousands)

Graph 2 indicates that there is a strong positive linear correlation. This is also
indicated through the value of correlation coefficient, 0.96.(the graph was generated
through Microsoft Excel )
2
Calculation of a test

The 2 test is used to measure whether two classifications or factors from

the same sample are independent of each other – if the occurrence of one of
them does not affect the occurrence of the other.
Observed Values:

B1 B2 Total
A1 A B A+B
A2 C D C+D
Total A+C B+D N

Calculations of Expected Values:

B1 B2 Total
A1 A+B

A2 C+D
Total A+C B+D N

Degrees of freedom measure the number of values in the final calculation that
are free to vary:

Null (H0) Hypothesis: SAT scores and family income are independent from each
other.

Alternative (H1) Hypothesis: SAT scores and family income are dependent from
each other.
Table 4: Observation Values

Score
Income($) 1300-1430 1431-1561 Total
15000 – 55000 4 1 5
56000 – 96000 - 4 4
Total 4 5 9
Table 2 shows the observed values for SAT score Vs. family income. The data
pieces have been put into ranges that represent the income of the families of the
test takers.

Table 5: Calculations for the Expected Values

Score
Income($) 1300-1430 1300-1430 Total
15000 – 55000 4+1

56000 – 96000 0+4

Total 4+0 1+4 9
Table 3 shows the individual calculations for each of the expected values.

Table 6: Expected Values

Score
Income($) 1300-1430 1300-1430 Total
15000 – 55000 2.22222 2.77777 5
56000 – 96000 1.77777 2.22222 4
Total 4 5 9
Table 6 shows the expected values retrieved by the calculations in table 4
The 2 critical value at 5% significance with 1 degree of freedom is 3.841. As the
2
value is greater than the critical value, 5.760 3.841, the null hypothesis is
rejected and SAT score is assumed dependent from family income.

Discussion/Validity

Limitations

Throughout the investigation between the correlation of SAT scores and

family income, various limitations may have affected the outcome of the results.

One limitation of the data collected could be that it only reflects on the
people who filled in the family income section before signing up for the SAT.
There is no evidence that the data reflects everyone who has taken the SAT
score as there may be people who did not fill that section.

Another limitation could be that not everyone in the world decide to take
the SAT, people who cannot afford it or take alternative tests are being neglected.
Also the data does not confirm of how many SAT takers are being considered.
The data can be proved insufficient and inaccurate for those reasons.

There is also a limitation in the data as it states income of “$100,000 and

above”. That could mean that the data goes on unto family incomes of millions
which is not proportionate to the other ranges of family income given. Due to this
however, that piece of data was left out in the calculations.

Continuing, there might be a limitation to the recording of the data itself as

SAT takers are to take a survey where they mention family income when signing
up for SAT. This might cause a problem as many SAT takers, mostly in ages 15-
17, do not know the actual income of their family therefore wrong data may be
entered.

Then there could be a limitation to the data due to culture and race. The
data does not mention culture and race which might affect the data as there
might have been more American surveys who mentioned family income
compared to Asian who answered the survey.
2
Another limitation is that the table of expected values in the test has all
values less than 5 which reduces its validity.
 Adding on to that, there might be a limitation to the amount of data that
was collected as 9 pieces of data may not prove to be sufficient enough to reflect
the correlation between SAT scores and family income in a world perspective.

Lastly, there may be many other factors taking place when considering the
correlation between SAT scores and family income such as reasons for having a
high family income and IQ of SAT test takers.

Conclusion

Despite of the previously mentioned limitations, the found 2 value, 5.760,

rejects the null hypothesis that SAT scores are independent from family income
and accepts the alternative hypothesis that SAT scores are dependent from
family income. Furthermore, the investigation clearly shows that there is a strong
and positive correlation between SAT score and family income as it can be an
assumed dependence from each other.

Work Cited

Rampell, Catherine. "SAT Scores and Family Income - NYTimes.com." The Economy

and the Economics of Everyday Life - Economix Blog - NYTimes.com. 28 Aug.

2009. Web. 01 Nov. 2010.<http://economix.blogs.nytimes.com /2009/08/27/sat-

scores-and-family-income/>.

Downey, Joel. "SAT Scores Rise with Family Income." Cleveland OH Local News,

Breaking News, Sports & Weather - Cleveland.com. 10 Apr. 2008. Web. 01 Nov.

2010.<http://www.cleveland.com/pdgraphics/index.ssf/2008/04/sat_scores_rise_

with_family_in.html>.

Whiffen, Glen, John Owen, Robert Haese, Sandra Haese, and Mark Bruce. "Two

Variable Statistics." Mathematics for the International Student: Mathematical

Studies SL. By Mal Coad. [S.l.]: Haese And Harris Pub, 2010. 581-82. Print.