A Sample of 30 Year Fixed Mortgage Rates at 12

question 5

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. Which of the following is true? $\begin{array} { l r r r r } \text { Sample } & \mathbb { N } & \text { Mean } & \text { StDev } & \text { SE Mean } \\ 1 & 12 & 6.650 & 0.390 & 0.11 \\ 2 & 16 & 7.050 & 0.220 & 0.055 \end{array}$
Difference $= m u ( 1 ) = m u$ (2)
Bstimate for difference: $\quad - 0.400$
95 옿 CI for difference: $( - 0.666 , - 0.134 )$
T-Test of difference $= 0$ (vs not $= ) :$ T-Value $= - 3.19$ P-Value $= 0.006 \quad$ DF $= 16$

• A) This is a paired design.
• B) This is a test of two means from independent samples.
• C) This is a one tailed test.
• D) Both A and C.

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Definitions:

Tippecanoe

The site of an 1811 battle in the Indiana Territory, where future President William Henry Harrison defeated Native American forces led by Tecumseh's brother, Tenskwatawa.

Customs Collectors

Officials responsible for collecting duties imposed by a government on imported and exported goods.

Democratic-Republican

A political party in the United States that evolved in the 1790s and supported states' rights and agriculture, opposing the Federalist Party.

Marbury V. Madison

A landmark U.S. Supreme Court case in 1803 that established the principle of judicial review in the United States, meaning that American courts have the power to strike down laws, statutes, and some government actions that they find to violate the Constitution.