A loan officer compares the interest rates for 48-month fixed-rate auto loans and 48-month variable-rate auto...
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A loan officer compares the interest rates for 48-month fixed-rate auto loans and 48-month variable-rate auto loans. Two independent, random samples of auto loan rates are selected. A sample of five 48-month variable-rate auto loans had the following loan rates: 3.01% 2.882% 3.23% 2.40% 3.23% while a sample of five 48-month fixed-rate auto loans had loan rates as follows: 4.040% 3.78% 4.375% 3.71% 4.21% Figure 11.7 OMP Output of Testing the Equality of Mean Loan Rates for Variable and Fixed 48-Month Auto Loans Means and Std Deviations Level Fixed Variable Number 5 5 Mean 4.02300 2.95040 Std Dev 0.341878 8.281149 t Test Variable-Fixed Assuming equal variances Difference Std Err Dif -1.0726 t Ratio -5.41847 0.1980 DF B Upper CL Dif -0.6161 Probit 0.0006 Lower CL Dif Confidence -1.5291 Prob > t 0.9997 8.95 Prob t <0.0003 (a) Set up the null and alternative hypotheses needed to determine whether the mean rates for 48-month variable-rate and fixed-rate auto loans differ HO. -v- versus Ha uf-u (b) Figure 11.7 gives the JMP output of using the equal variances procedure to test the hypotheses you set up in part a. Assuming that the normality and equal variances assumptions hold, use the JMP output and critical values to test these hypotheses by setting a equal to 10, 05, 01, and 001. How much evidence is there that the mean rates for 48-month fixed- and variable-rate auto loans differ? (Round your answer to 3 decimal places.) with 8 d the null hypothesis in favor of the alternative for each a value. t- we will evidence that rates differ (c) Figure 11.7 gives the p-value for testing the hypotheses you set up in part a Use the p-value to test these hypotheses by setting a equal to 10, 05, 01, and 001 How much evidence is there that the mean rates for 48-month fixed- and variable-rate auto loans differ? (Round your answer to 4 decimal places.) p-value= we will the null hypothesis in favor of the alternative for each a value evidence (d) Calculate a 95 percent confidence interval for the difference between the mean rates for fixed- and variable-rate 48-month auto loans. Can we be 95 percent confident that the difference between these means exceeds 4 percent? (Round your answers to 4 decimal places.) Confidence interval the entire interval is A. (e) Use a hypothesis test to establish that the difference between the mean rates for fixed and variable-rate 48-month auto loans exceeds 4 percent. Use a equal to 05. (Round your t answer to 4 decimal places and other answers to 1 decimal place.) HO: uf-uv versus Ha: uf-pv t- HO with a .05. A loan officer compares the interest rates for 48-month fixed-rate auto loans and 48-month variable-rate auto loans. Two independent, random samples of auto loan rates are selected. A sample of five 48-month variable-rate auto loans had the following loan rates: 3.01% 2.882% 3.23% 2.40% 3.23% while a sample of five 48-month fixed-rate auto loans had loan rates as follows: 4.040% 3.78% 4.375% 3.71% 4.21% Figure 11.7 OMP Output of Testing the Equality of Mean Loan Rates for Variable and Fixed 48-Month Auto Loans Means and Std Deviations Level Fixed Variable Number 5 5 Mean 4.02300 2.95040 Std Dev 0.341878 8.281149 t Test Variable-Fixed Assuming equal variances Difference Std Err Dif -1.0726 t Ratio -5.41847 0.1980 DF B Upper CL Dif -0.6161 Probit 0.0006 Lower CL Dif Confidence -1.5291 Prob > t 0.9997 8.95 Prob t <0.0003 (a) Set up the null and alternative hypotheses needed to determine whether the mean rates for 48-month variable-rate and fixed-rate auto loans differ HO. -v- versus Ha uf-u (b) Figure 11.7 gives the JMP output of using the equal variances procedure to test the hypotheses you set up in part a. Assuming that the normality and equal variances assumptions hold, use the JMP output and critical values to test these hypotheses by setting a equal to 10, 05, 01, and 001. How much evidence is there that the mean rates for 48-month fixed- and variable-rate auto loans differ? (Round your answer to 3 decimal places.) with 8 d the null hypothesis in favor of the alternative for each a value. t- we will evidence that rates differ (c) Figure 11.7 gives the p-value for testing the hypotheses you set up in part a Use the p-value to test these hypotheses by setting a equal to 10, 05, 01, and 001 How much evidence is there that the mean rates for 48-month fixed- and variable-rate auto loans differ? (Round your answer to 4 decimal places.) p-value= we will the null hypothesis in favor of the alternative for each a value evidence (d) Calculate a 95 percent confidence interval for the difference between the mean rates for fixed- and variable-rate 48-month auto loans. Can we be 95 percent confident that the difference between these means exceeds 4 percent? (Round your answers to 4 decimal places.) Confidence interval the entire interval is A. (e) Use a hypothesis test to establish that the difference between the mean rates for fixed and variable-rate 48-month auto loans exceeds 4 percent. Use a equal to 05. (Round your t answer to 4 decimal places and other answers to 1 decimal place.) HO: uf-uv versus Ha: uf-pv t- HO with a .05.
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Related Book For
Business Statistics In Practice
ISBN: 9780073401836
6th Edition
Authors: Bruce Bowerman, Richard O'Connell
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