Question: In order to estimate the mean 30 year fixed mortgage rate
In order to estimate the mean 30-year fixed mortgage rate for a home loan in the United States, a random sample of 28 recent loans is taken. The average calculated from this sample is 5.25%. It can be assumed that 30-year fixed mortgage rates are normally distributed with a standard deviation of 0.50%. Compute 90% and 99% confidence intervals for the population mean 30-year fixed mortgage rate.
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