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: 2.50% 3.06% 4.026% 3.89% 4.385% 2.866% while a sample of five 48-month fixed-rate auto loans had loan rates as follows: Fixed Variable Means and Std Deviations Level t Test Figure 11.7 JMP Output of Testing the Equality of Mean Loan Rates for Variable and Fixed 48-Month Auto Loans HO: uf - µV = Number 5 5 Variable-Fixed Assuming equal variances Difference Std Err Dif Upper CL Dif Lower CL Dif Confidence. 3.28% -1.1030 0.1743 -0.7012 -1.5048 0.95 3.14% 3.80% 4.26% Mean 4.07220 2.96920 t Ratio DF Prob > t Prob > t Prob < t Std Dev 0.301999 0.246240 -6.32953 (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. Answer is complete and correct. 0✓ versus Ha: uf- µv # 8 0.0002* 0.9999 <0.0001* 0 (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.) we will Extremely strong t = p-value = we will Extremely strong 6.330 (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.) reject evidence that rates differ. Answer is complete and correct. with 8 df the null hypothesis in favor of the alternative for each a value. 0.0002 reject evidence. Answer is complete and correct. the null hypothesis in favor of the alternative for each a value. (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= HO: uf- uv t = Reject (0.6793) 0.0000 x X Answer is complete but not entirely correct. (1.4187) X]. (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.) 0.4 Yes X Answer is complete but not entirely correct. versus Ha: uf- uv HO with a = .05. the entire interval is 0.4 above .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: 2.50% 3.06% 4.026% 3.89% 4.385% 2.866% while a sample of five 48-month fixed-rate auto loans had loan rates as follows: Fixed Variable Means and Std Deviations Level t Test Figure 11.7 JMP Output of Testing the Equality of Mean Loan Rates for Variable and Fixed 48-Month Auto Loans HO: uf - µV = Number 5 5 Variable-Fixed Assuming equal variances Difference Std Err Dif Upper CL Dif Lower CL Dif Confidence. 3.28% -1.1030 0.1743 -0.7012 -1.5048 0.95 3.14% 3.80% 4.26% Mean 4.07220 2.96920 t Ratio DF Prob > t Prob > t Prob < t Std Dev 0.301999 0.246240 -6.32953 (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. Answer is complete and correct. 0✓ versus Ha: uf- µv # 8 0.0002* 0.9999 <0.0001* 0 (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.) we will Extremely strong t = p-value = we will Extremely strong 6.330 (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.) reject evidence that rates differ. Answer is complete and correct. with 8 df the null hypothesis in favor of the alternative for each a value. 0.0002 reject evidence. Answer is complete and correct. the null hypothesis in favor of the alternative for each a value. (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= HO: uf- uv t = Reject (0.6793) 0.0000 x X Answer is complete but not entirely correct. (1.4187) X]. (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.) 0.4 Yes X Answer is complete but not entirely correct. versus Ha: uf- uv HO with a = .05. the entire interval is 0.4 above .4.
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Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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