26-109 If the Entire Mortgage Pool Is Repaid at the End

question 105

Multiple Choice

26-109 If the entire mortgage pool is repaid at the end of the second month,what is the weighted average life of the mortgage pool?

• A)2.10 months.
• B)2 months.
• C)1.997 months.
• D)1.95 months.
• E)1.90 months.

---

Definitions:

P > .05

A statistical expression indicating that the probability of the observed data, or something more extreme, if the null hypothesis is true, is greater than 5%.

Null Hypothesis

The default assumption in statistical hypothesis testing that there is no significant effect or difference, intended to be challenged by the alternative hypothesis.

Degrees of Freedom

The number of independent values or quantities that can be assigned to a statistical distribution, which affects the calculation of statistical estimates.

T-test for Dependent Means

A statistical test used to compare the means of two related groups.