A mortgage specialist would like to analyze the average mortgage rates for Atlanta, Georgia. He studies the
Question:
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 InstitutionAPR
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
Step by Step Answer:
Essentials Of Business Statistics Communicating With Numbers
ISBN: 9780078020544
1st Edition
Authors: Sanjiv Jaggia, Alison Kelly