Answered: In order to estimate the mean 30-year…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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In order to estimate the mean 30-year fixed mortgage rate for a home loan in the United States, a random sample of 25 recent loans is taken. The average calculated from this sample is 7.10%. It can be assumed that 30-year fixed mortgage rates are normally distributed with a population standard deviation of 0.5%. Compute 90% and 99% confidence intervals for the population mean 30-year fixed mortgage rate. (You may find it useful to reference the z table. Round your final answer to 2 decimal places. Enter your answers as percentages, not decimals.)

Confidence Level	Confidence Interval
90%		%	to	%
99%		%	to	%

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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