A loan officer intends to compare the interest rate for 48-month fixed-rate auto loans and 48-month...
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A loan officer intends to compare the interest rate for 48-month fixed-rate auto loans and 48-month variable-rate auto loans. She selects two independent random samples of 48-month auto loans and observes the following loan rates: Fixed rate (%) 10.29 9.75 9.50 9.99 9.75 9.99 11.40 Variable rate (%) 9.59 8.75 8.99 8.50 9.00 10.00 Using this data set perform the following tasks. Do all calculations manually', i.e., with a hand calculator without using R, Excel or any other software, showing the relevant formulas and the major steps. a) Carry out an appropriate hypothesis test at the 5% significance level to see whether the population variance of the fixed-rate 48-months auto loans likely exceeds the population variance of the variable-rate 48-months auto loans. Briefly discuss the steps of the test showing all relevant details. A loan officer intends to compare the interest rate for 48-month fixed-rate auto loans and 48-month variable-rate auto loans. She selects two independent random samples of 48-month auto loans and observes the following loan rates: Fixed rate (%) 10.29 9.75 9.50 9.99 9.75 9.99 11.40 Variable rate (%) 9.59 8.75 8.99 8.50 9.00 10.00 Using this data set perform the following tasks. Do all calculations manually', i.e., with a hand calculator without using R, Excel or any other software, showing the relevant formulas and the major steps. a) Carry out an appropriate hypothesis test at the 5% significance level to see whether the population variance of the fixed-rate 48-months auto loans likely exceeds the population variance of the variable-rate 48-months auto loans. Briefly discuss the steps of the test showing all relevant details.
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Business Statistics In Practice
ISBN: 9780073401836
6th Edition
Authors: Bruce Bowerman, Richard O'Connell
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