A loan officer compares the interest rates for 48-month fixed-rate auto loans and 48-month variable-rate auto loans. Two independer 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% 3.12% 2.880% 3.19% while a sample of five 48-month fixed-rate auto loans had loan rates as follows: 4.028% 3.938 4.3958 3.65% 4.20% Figure 11.7 JMP Output of Testing the Equality of Mean Loan Rates for Variable and Fixed 48-Month Auto Loans Means and Std Deviations Level Fixed Variable t Test Variable-Fixed Assuming equal variances Difference Std Err Dif Upper CL Dif Lower CL Dif Confidence HO: uf- uv= Number 5 5 3.22% we will -1.0586 0.1841 -0.6341 -1.4831 0.95 t= Mean 4.04060 2.98200 t Ratio DF Prob > t Prob > t Prob < t (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. Std Dev 0.300699 0.281055 versus Ha: uf- µv # -5.75102 8 0.0004* 0.9998 <0.0002* (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 tha 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.) with 8 df the null hypothesis in favor of the alternative for each a value. evidence that rates differ. (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 (Doun decimal places)
A loan officer compares the interest rates for 48-month fixed-rate auto loans and 48-month variable-rate auto loans. Two independer 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% 3.12% 2.880% 3.19% while a sample of five 48-month fixed-rate auto loans had loan rates as follows: 4.028% 3.938 4.3958 3.65% 4.20% Figure 11.7 JMP Output of Testing the Equality of Mean Loan Rates for Variable and Fixed 48-Month Auto Loans Means and Std Deviations Level Fixed Variable t Test Variable-Fixed Assuming equal variances Difference Std Err Dif Upper CL Dif Lower CL Dif Confidence HO: uf- uv= Number 5 5 3.22% we will -1.0586 0.1841 -0.6341 -1.4831 0.95 t= Mean 4.04060 2.98200 t Ratio DF Prob > t Prob > t Prob < t (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. Std Dev 0.300699 0.281055 versus Ha: uf- µv # -5.75102 8 0.0004* 0.9998 <0.0002* (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 tha 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.) with 8 df the null hypothesis in favor of the alternative for each a value. evidence that rates differ. (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 (Doun decimal places)
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
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Question
Transcribed Image Text: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%
while a sample of five 48-month fixed-rate auto loans had loan rates as follows:
4.028% 3.93% 4.395% 3.65%
Figure 11.7
JMP Output of Testing the Equality of Mean Loan Rates for
Variable and Fixed 48-Month Auto Loans.
Means and Std Deviations
Level
Fixed
Variable
3.12% 2.880% 3.19% 3.22%
t Test.
Variable-Fixed
Assuming equal variances
Difference
Std Err Dif
Upper CL Dif
Lower CL Dif
Confidence
HO: uf- uv =
we will
we will
Number
5
5
t=
-1.0586
0.1841
-0.6341
-1.4831
0.95
4.20%
p-value=
(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.
Mean
4.04060
2.98200
t Ratio
DF
Prob > |t|
Prob > t
Prob < t
(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.)
evidence.
Std Dev
0.300699
0.281055
versus Ha: uf- µv #
-5.75102
8
0.0004*
0.9998
<0.0002*
(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.)
with 8 df
the null hypothesis in favor of the alternative for each a value.
evidence that rates differ.
the null hypothesis in favor of the alternative for each a value.
Expert Solution
Step 1
(a) The objective is to state the null and alternative hypotheses needed to determine whether the mean rates for 48-month variable rate and fixed rate auto loans differ.
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