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I recently had a family ask me a great question: “how much is one point on the ACT worth in dollars?”
I was curious and I wanted to find a more exciting answer than “it depends on what you and your family values etc…”
To calculate the average dollar amount value of a single point increase on the ACT, we went out and built a list of ALL the ACT scholarships we could find, their dollar values, and their ACT cutoff thresholds and we let the statistics magic begin
Ultimately we calculated that a single point increase on the ACT was worth $8,451 over four years.
These schools prefer to give all of their scholarship money in the form of financial-aid, a package of grants, student work options, and sometimes loans that make these (otherwise very expensive schools) often very affordable.
For our friends who love statistics, want to learn about statistics, or are simply wary of random figures posted in blogs, here are the calculations and methods we used to get our numbers and graphs! If you DON’T like statistics don’t worry! This section just explains how we got to the number of $8,451.
Our data set was an aggregated list of merit scholarship amounts and their corresponding ACT threshold. Merit scholarships were only included if they depended solely on ACT score (so as to reduce risk of bias from unobserved variables like “student GPA” or “student achievement”.)
Our equation was modeled as follows: Dollars= ß1(Score) + C
Regression Results are shown below:
ß1 T-Stat: 9.174 (p>0.000)