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A loan officer compares the interest rates for 48month fixedrate auto loans and 48month variablerate auto loans. Two independent, random samples of auto loan rates
A loan officer compares the interest rates for 48month fixedrate auto loans and 48month variablerate auto loans. Two independent, random samples of auto loan rates are selected. A sample of ve 483month variableirate auto loans had the following loan rates: 2 2.49% 3.91% 2.882% 3.23% 3 . 23% points while a sample of ve 48month fixedrate auto loans had loan rates as follows: 4.946% 3.78% 4.375% 3.71% 4.21% Figure 11.7 3MP Output of Testing the Equality of Mean Loan Rates for Variable and Fixed 48Honth Auto Loans Means and Std Deviations Level Nu-ber Mean Std Dev Fixed 5 4.523399 9.341878 Variable 5 2.95949 9. 281149 t Test VariableFixed Assuming equal variances Difference 31.8726 t Ratio 75.41847 Std EFF Dif 3.1989 DF 8 Upper CL 01+ B.6161 Prob > |t| 63.6696" Lower CL Dif *1.5291 Prob > t 9.9997 Confidence 6.95 Prob t 8.999? Confidence 8.95 Prob o
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