A Sample of 30 Year Fixed Mortgage Rates at 12 $\mathbf { C l }$

question 3

Multiple Choice

A sample of 30 year fixed mortgage rates at 12 randomly chosen credit unions yields a mean rate of 6.65 % and a sample standard deviation of 0.38%. A sample of 30 year
Fixed mortgage rates at 16 randomly selected banks yields a mean rate of 7.05% and a
Sample standard deviation of 0.22%. Are the mean rates different between credit unions
And banks? Relevant output is shown below. At the 0.05 level of significance, the
Correct conclusion is Two-Sample T-Test and $\mathbf { C l }$
$\begin{array} { l r r r r } \text { Sample } & \mathbb { N } & \text { Mean } & \text { StDev } & \text { SE Mean } \\ 1 & 12 & 6.650 & 0.390 & 0.11 \\ 2 & 16 & 7.050 & 0.220 & 0.055 \end{array}$
Difference $= m u$ (1) $- \mathrm { mu }$ (2)
Bstimate for difference: $- 0.400$
$95 \%$ CI for difference: $( - 0.666 , - 0.134 )$
$T$ -Test of difference $= 0$ (vs not $= ) : T$ -Value $= - 3.19$ p-Value $= 0.006 \quad \mathrm { DF } = 16$

• A) Reject the null hypothesis.
• B) Do not reject the null hypothesis.
• C) Evidence suggests that there is a significant difference in mean mortgage rates
• Between credit unions and banks.
• D) Both A and C.
• E) Both B and C.

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Definitions:

Aggregate Plan

A planning strategy that outlines the overall production activities of a company over a certain period of time to meet forecasted demand.

Master Production Schedule

A detailed plan that outlines exactly what is to be produced, in what quantities, and when, serving as a critical component in manufacturing and supply chain management.

Finance

The field that deals with the management of money, including the creation, management, and investment of it, across various entities like individuals, businesses, and governments.

Master Production Schedule

A detailed timetable for manufacturing, which outlines what to produce, in what quantities, and when, aligning production with demand.