A loan officer at a bank wishes to compare the mortgage rates charged at banks in Texas

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A loan officer at a bank wishes to compare the mortgage rates charged at banks in Texas with the mortgage rates of Texas savings and loans. Two independent random samples of bank mortgage rates and savings and loan mortgage rates in Texas are obtained with the following results:
A loan officer at a bank wishes to compare the

Because both samples are small, the bank officer is uncertain about the shape of the distributions of bank and savings and loan mortgage rates. Therefore, the Wilcoxon rank sum test will be used to compare the two types of mortgage rates.
a. Let D1 be the distribution of bank mortgage rates and let D2, be the distribution of savings and loan mortgage rates. Carry out the Wilcoxon rank sum test to determine whether D1 and D2 are identical versus the alternative that Di is shifted to the right or left of D2. Use α = .05.
b. Carry out the Wilcoxon rank sum test to determine whether Dl is shifted to the right of D2. Use α = .025. What do you conclude?

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Business Statistics In Practice

ISBN: 9780073401836

6th Edition

Authors: Bruce Bowerman, Richard O'Connell

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