When Is Refinancing a Home Worthwhile

question 12

Multiple Choice

When is refinancing a home worthwhile?

• A)When interest rates have dropped more than two percent
• B)When you can decrease your monthly payment significantly
• C)When the penalty cost is less than the financial benefit
• D)When interest rates have dropped significantly

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Definitions:

Contingency Table

A tabular method used to summarize the relationship between several categorical variables, showing distribution of frequencies.

Qualitative Variables

Variables that describe or categorize attributes or properties of a subject without using numerical values.

Chi-Square Test

A statistical test used to determine if there is a significant difference between observed frequencies and expected frequencies in one or more categories.

Expected Frequency

The number of times an event is predicted to occur in a statistical experiment based on the probabilities of outcomes.