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NAME Section: 1 3 Serial: Q3 (11 pts.) A loan officer compares the interest rates for 48-months fixed-rate auto loans and 48- te auto loans.

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NAME Section: 1 3 Serial: Q3 (11 pts.) A loan officer compares the interest rates for 48-months fixed-rate auto loans and 48- te auto loans. Two independent, random samples of auto loan rates are selected. A sample of six 48 months fixed-rate auto loans had the following loan rates: 4.29% 3.75% 3.50% 3.99% 5.40% 4.00% While a sample of five 48-month variable-rate auto loans had loan rates as follows: 3.59% 2.75% 2.99% 2.50% 3.00% Use the following summary for both samples fixed-rate variable-rate n6 mean 1 4 .155% 2.966% Standard deviation 0.6652% 0.4046% Test the hypotheses whether the mean rates for 48-month fixed-rate and variable-rate auto loans differ. Assume equal variances for both populations. Use level of significance 10%.) The hypotheses are (pt.) Assumptions (2 pts): Decision Rule (1 pr.) The test statistic (4 pts. Critical value(s) (1 pt.) Conclusion (2 pts.) NAME Section: 1 3 Serial: Q3 (11 pts.) A loan officer compares the interest rates for 48-months fixed-rate auto loans and 48- te auto loans. Two independent, random samples of auto loan rates are selected. A sample of six 48 months fixed-rate auto loans had the following loan rates: 4.29% 3.75% 3.50% 3.99% 5.40% 4.00% While a sample of five 48-month variable-rate auto loans had loan rates as follows: 3.59% 2.75% 2.99% 2.50% 3.00% Use the following summary for both samples fixed-rate variable-rate n6 mean 1 4 .155% 2.966% Standard deviation 0.6652% 0.4046% Test the hypotheses whether the mean rates for 48-month fixed-rate and variable-rate auto loans differ. Assume equal variances for both populations. Use level of significance 10%.) The hypotheses are (pt.) Assumptions (2 pts): Decision Rule (1 pr.) The test statistic (4 pts. Critical value(s) (1 pt.) Conclusion (2 pts.)

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