A mortgage specialist would like to analyze the average mortgage rates for Atlanta, Georgia. He collects data on the annual percentage rates (APR in %) for 30-year fixed loans as shown in the following table. If he is willing to assume that these rates are randomly drawn from a normally distributed population, can he conclude that the mean mortgage rate for the population exceeds 4.45%? Test the hypothesis at a 1% level of significance.
Financial Institution APR
G Squared Financial 4.025 %
Best Possible Mortgage 4.840
Hersch Financial Group 4.785
Total Mortgages Services 4.850
Wells Fargo 4.465
Quicken Loans 4.705
Amerisave 4.305
a. Select the null and the alternative hypotheses.
a. H0: µ ≥ 4.45; HA: µ < 4.45
b. H0: µ ≤ 4.45; HA: µ > 4.45
c. H0: μ = 4.45; HA: μ ≠ 4.45
b. Calculate the value of the test statistic. (Round intermediate calculations to at least 4 decimal places and final answer to 2 decimal places.)
_______Test Statistic
c. Find the p-value.
a. 0.05 p-value < 0.10
b. 0.025 p-value < 0.05
c. 0.01 p-value < 0.025
d. p-value 0.10
e. p-value < 0.01
d. What is the conclusion?
a. Do not reject H0 since the p-value is smaller than significance level.
b. Do not reject H0 since the p-value is greater than significance level.
c. Reject H0 since the p-value is smaller than significance level.
d. Reject H0 since the p-value is greater than significance level.
e. Make an inference at α = 0.010.
a. The mean mortgage rate equals 4.45%.
b. The mean mortgage rate does not equal 4.45%.
c. The mean mortgage rate does not exceed 4.45%.
d. The mean mortgage rate exceeds 4.45%.
a)
b. H0: µ ≤ 4.45; HA: µ > 4.45
b)
Test statistic,
t = (xbar - mu)/(s/sqrt(n))
t = (4.5679 - 4.45)/(0.3146/sqrt(7))
t = 0.99
c)
P-value Approach
P-value = 0.1802
d. p-value > 0.10
d)
b. Do not reject H0 since the p-value is greater than significance level.
e)
c. The mean mortgage rate does not exceed 4.45%.
A mortgage specialist would like to analyze the average mortgage rates for Atlanta, Georgia. He collects...
A mortgage specialist would like to analyze the average mortgage rates for Atlanta, Georgia. He collects data on the annual percentage rates (APR in %) for 30-year fixed loans as shown in the following table. If he is willing to assume that these rates are randomly drawn from a normally distributed population, can he conclude that the mean mortgage rate for the population exceeds 4.20%? Test the hypothesis at a 10% level of significance. (You may find it useful to...
A mortgage specialist would like to analyze the average mortgage rates for Atlanta, Georgia. He collects data on the annual percentage rates (APR in %) for 30-year fixed loans as shown in the following table. If he is willing to assume that these rates are randomly drawn from a normally distributed population, can he conclude that the mean mortgage rate for the population exceeds 4.25%? Test the hypothesis at a 5% level of significance. (You may find it useful to...
A mortgage specialist would like to analyze the average mortgage rates for Atlanta, Georgia. He collects data on the annual percentage rates (APR in %) for 30-year fixed loans as shown in the following table. If he is willing to assume that these rates are randomly drawn from a normally distributed population, can he conclude that the mean mortgage rate for the population exceeds 4.2%? Test the hypothesis at the 10% level of significance. (You may find it useful to...
A mortgage specialist would like to analyze the average mortgage rates for Atlanta, Georgia. He collects data on the annual percentage rates APR In % for 30-year fixed loans as shown in the following table. If he is willing to assume that these rates are randomly drawn from a normally distributed population, can he conclude that the mean mortgage rate for the population exceeds 4.2%? Test the hypothesis at the 10% level of significance. (You may find it useful to...
A mortgage speclallst would like to analyze the average mortgage rates for Atlanta, Georgla. He collects data on the annual percentage rates (APR In %) for 30-year fixed loanG as shown In the following table. If he is willing to assume that theGe rateG are randomly drawn from a normally distributed population, can he conclude that the mean mortgage rate for the population exceeds 4.2%? Test the hypothesis at the 10% level of significance. (You may find it useful to...
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