Hypothesis Testing: University of Maryland University College

University of Maryland University College is concerned that out of state students may be receiving lower grades than Maryland students. Two independent random samples have been selected: 165 observations from population 1 (Out of state students) and 177 from population 2 (Maryland students). The sample means obtained are X1(bar) =86 and X2(bar) =87. It is known from previous studies that the population variances are 8.1 and 7.3 respectively. Using a level of significance of .01, is there evidence that the out of state students may be receiving lower grades? Fully explain your answer.