(Round all intermediate calculations to at least 4 decimal places.) A mortgage s

Question

(Round all intermediate calculations to at least 4 decimal places.)

A mortgage specialist would like to analyze the average mortgage rates for Atlanta, Georgia. He studies the following sample APR quotes. These are the annual percentage rates (APR) for 30-year fixed loans. If he is willing to assume that these rates are randomly drawn from a normally distributed population, can he conclude that the mean mortgage rate for the population exceeds 4.30%? Test the hypothesis at a 1% level of significance. Use Table 2.

4.465

Use the p-value approach.

H0: = 4.30; HA: 4.30

Calculate the value of the test statistic. (Round your answer to 2 decimal places.)

Reject H0 since the p-value is greater than .

Use the critical value approach.

Calculate the critical value. (Round your answer to 3 decimal places.)

Financial Institution APR   G Squared Financial 4.860%   Best Possible Mortgage 4.460        Hersch Financial Group 4.495        Total Mortgages Services 4.850        Wells Fargo 4.245        Quicken Loans 4.435        Amerisave

4.465

Explanation / Answer

One-Sample T: APR

Test of mu = 4.3 vs > 4.3

99% Lower
Variable N Mean StDev SE Mean Bound T P
APR 7 4.5443 0.2275 0.0860 4.2741 2.84 0.015

approximate p-vale 0.010 < p-value < 0.025

P-vale > 0.01 we do not reject null hypothesis we conclude that The mean mortgage rate for the sample exceeds 4.30%.

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