(e) Use a hypothesis test to establish that the difference between the mean rates for fixed-...

  

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(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: f-v Reject Answer is complete but not entirely correct. s 0.4 versus Ha: pf-v t = 8.3400 x HO with a = .05. 0.4 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: 2.60% 3.08% 2.868% 3.21% 3.23% while a sample of five 48-month fixed-rate auto loans had loan rates as follows: 4.028% 3.89% 4.388% 3.66% Figure 11.7 4.19% JMP Output of Testing the Equality of Mean Loan Rates for Variable and Fixed 48-Month Auto Loans Means and Std Deviations Level Fixed Variable t Test Number 5 Mean 4.03120 5 2.99760 Variable-Fixed Assuming equal variances Std Dev 0.264951 0.278505 Difference -1.0336 t Ratio -6.01247 Std Err Dif 0.1719 DF 8 Upper CL Dif -0.6372 Prob |t| 0.0003* Lower CL Dif -1.4300 Prob > t 0.9998 Confidence 0.95 Prob (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: f-v Reject Answer is complete but not entirely correct. s 0.4 versus Ha: pf-v t = 8.3400 x HO with a = .05. 0.4 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: 2.60% 3.08% 2.868% 3.21% 3.23% while a sample of five 48-month fixed-rate auto loans had loan rates as follows: 4.028% 3.89% 4.388% 3.66% Figure 11.7 4.19% JMP Output of Testing the Equality of Mean Loan Rates for Variable and Fixed 48-Month Auto Loans Means and Std Deviations Level Fixed Variable t Test Number 5 Mean 4.03120 5 2.99760 Variable-Fixed Assuming equal variances Std Dev 0.264951 0.278505 Difference -1.0336 t Ratio -6.01247 Std Err Dif 0.1719 DF 8 Upper CL Dif -0.6372 Prob |t| 0.0003* Lower CL Dif -1.4300 Prob > t 0.9998 Confidence 0.95 Prob