A mortgage specialist would like to analyze the average mortgage rates for Atlanta, Georgia. He studies the following sample APR quotes. These are the annual percentage rates (APR) for 30-year fixed loans. 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 a 10% level of significance using
(a) The p-value approach and
(b) The critical value approach.
Financial Institution APR
G Squared Financial.... 4.125%
Best Possible Mortgage.... 4.250
Hersch Financial Group.... 4.250
Total Mortgages Services.... 4.375
Wells Fargo.... 4.375
Quicken Loans.... 4.500
Amerisave.... 4.750

  • CreatedJanuary 28, 2015
  • Files Included
Post your question