Question
A loan officer compares the interest rates for 48 month fixed rate auto loans and 48 month variable rate auto loan rates. Two, independent random
A loan officer compares the interest rates for 48 month fixed rate auto loans and
48 month variable rate auto loan rates. Two, independent random samples for fixed
and variable rates provided the following rates. Five 48 month fixed rate auto loans
had the following rates:
3.75%, 4,50%, 3.99%, 4.25%, 3.99%
Five 48 month variable rate loans led to the following rates:
3.59%, 3.75%, 3.69%, 3.50%, 3.80%
- 10 pts
a) Is there enough evidence to indicate a difference in the variances of the interest rates
for these fixed and variable rate loans? Assume alpha = .05.
2.5 pts
b) What is the p value for this problem?
2. 10 pts
a) Is there enough evidence to indicate that the mean interest rate for fixed-rate
loans is greater than the interest rate for variable rate loans? Assume alpha =.05
b) What is the p-value for this problem?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
a To determine if there is enough evidence to indicate a difference in the variances of the interest ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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