Concept explainers
Mortgage rates: Following are interest rates (annual percentage rates) for a 30-year fixed rate mortgage from a sample of lenders in Macon. Georgia on June 20. 2013. It is reasonable to assume that the population is approximately normal.
- Construct a 99 confidence interval for the
mean rate. - One week earlier. The mean rate was 4.050%. A mortgage broker claims that the mean rate is now higher. Based on the confidence interest. Is this a reasonable claim? Explain.
(a)
>The
Answer to Problem 32E
From the above MINITAB output, the
Explanation of Solution
Given information:
Following are interest rates (annual percentage rates) for a
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Population is normally distributed.
Calculation:
MINITAB is used to construct
MINITAB procedure:
Step
Step
Step
Step
Step
Step
MINITAB output:
One-Sample
From the above MINITAB output, the
(b)
>Whether claim made in the problem statement is contradictory to the confidence interval.
Answer to Problem 32E
No, it is a reasonable claim.
Explanation of Solution
Given information:
Following are interest rates (annual percentage rates) for a
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Population is normally distributed.
One week earlier the mean rate was
A claim is made by broker that the mean rate is now higher.
Calculation:
From part
Since this interval does contain the value
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Chapter 8 Solutions
Elementary Statistics (Text Only)
- Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw HillBig Ideas Math A Bridge To Success Algebra 1: Stu...AlgebraISBN:9781680331141Author:HOUGHTON MIFFLIN HARCOURTPublisher:Houghton Mifflin Harcourt