Question

Following are interest rates (annual percentage rates) for a 30-year-fixed-rate mortgage from a sample of lenders...

Following are interest rates (annual percentage rates) for a 30-year-fixed-rate mortgage from a sample of lenders in a certain cityIt is reasonable to assume that the population is approximately normal.

4.327,4.461,4,547 4.468, 4.365 , 4.707, 4.842

Find the upper bound of the 99% confidence interval for the mean rate.

Round to three decimal places (for example : 4.015 ). Write only a number as your answer . Do not write any units ..

Homework Answers

Answer #1
x (x-xbar)^2
4.327 0.041616
4.461 0.0049
4.547 0.000256
4.468 0.003969
4.365 0.027556
4.707 0.030976
4.842 0.096721
Sum 31.717 0.205994
Mean(x)=xbar=sum(x)/n 4.531
standard deviation(s)=sum(x-xbar)^2/n-1 0.18529
n 7
for 99 % confidence level with degree of freedom (n-1)=6
c 0.1
degrres of freedom 6
t=critical value obtain using t-table with corresponding df=n-1 1.94318
Margin of error =t*s/sqrt(n) 0.136087
lower bound =xbar-ME 4.394913
upper bound =xbar+ME 4.667087

Upper bound=4.667

#  upper bound of the 99% confidence interval for the mean rate. is  4.667

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Following are interest rates (annual percentage rates) for a 30-year-fixed-rate mortgage from a sample of lenders...
Following are interest rates (annual percentage rates) for a 30-year-fixed-rate mortgage from a sample of lenders in a certain city. It is reasonable to assume that the population is approximately normal. 4.327, 4.461, 4.547, 4.621 , 4.365, 4.558 , 4.842 Find the upper bound of the 99% confidence interval for the mean rate.
*Please Answer All * 1. A company has developed a new type of light bulb and...
*Please Answer All * 1. A company has developed a new type of light bulb and wants to estimate its mean lifetime. A simple random sample of 12 bulbs had a sample mean lifetime of 651 hours with a sample standard deviation of 31 hours. It is reasonable to believe that the population is approximately normal. Find the lower bound of the 95% confidence interval for the population mean lifetime of all bulbs manufactured by this new process. Round to...
Six measurements were made of the mineral content (in percent) of spinach, with the following results....
Six measurements were made of the mineral content (in percent) of spinach, with the following results. It is reasonable to assume that the population is approximately normal 19.1, 20.1, 20.8, 20.5, 20.5, 19.5 Find the lower bound of the 95% confidence interval for the true mineral content. Round to three decimal places (for example: 20.015)Write only a number as your answer . Do not write any units.
In order to estimate the mean 30-year fixed mortgage rate for a home loan in the...
In order to estimate the mean 30-year fixed mortgage rate for a home loan in the United States, a random sample of 21 recent loans is taken. The average calculated from this sample is 4.50%. It can be assumed that 30-year fixed mortgage rates are normally distributed with a standard deviation of 0.3%. Compute 90% and 95% confidence intervals for the population mean 30-year fixed mortgage rate. (You may find it useful to reference the z table. Round intermediate calculations...
In order to estimate the mean 30-year fixed mortgage rate for a home loan in the...
In order to estimate the mean 30-year fixed mortgage rate for a home loan in the United States, a random sample of 14 recent loans is taken. The average calculated from this sample is 7.35%. It can be assumed that 30-year fixed mortgage rates are normally distributed with a standard deviation of 0.6%. Compute 90% and 99% confidence intervals for the population mean 30-year fixed mortgage rate. (You may find it useful to reference the z table. Round intermediate calculations...
In order to estimate the mean 30-year fixed mortgage rate for a home loan in the...
In order to estimate the mean 30-year fixed mortgage rate for a home loan in the United States, a random sample of 27 recent loans is taken. The average calculated from this sample is 5.50%. It can be assumed that 30-year fixed mortgage rates are normally distributed with a standard deviation of 0.8%. Compute 90% and 95% confidence intervals for the population mean 30-year fixed mortgage rate. (You may find it useful to reference the z table. Round intermediate calculations...
A company has developed a new type of light bulb, and wants to estimate its mean...
A company has developed a new type of light bulb, and wants to estimate its mean lifetime. A simple random sample of 12 bulbs had a sample mean lifetime of 739 hours with a sample standard deviation of 45 hours. It is reasonable to believe that the population is approximately normal. Find the lower bound of the 95% confidence interval for the population mean lifetime of all bulbs manufactured by this new process Round to the nearest integer Write only...
Bank of America offers you a 30-year, fixed-rate mortgage with 80% LTV, an annual interest rate...
Bank of America offers you a 30-year, fixed-rate mortgage with 80% LTV, an annual interest rate of 4.25%, and mortgage payments of $2,312. Home value is 550,000. What is the down payment on this loan?
Question 1 (1 point) Suppose that a sample of size 60 is drawn from a population...
Question 1 (1 point) Suppose that a sample of size 60 is drawn from a population with mean 88 and standard deviation 61 . Find the value of , the mean of the distribution of sample means. Wrtie only a number as your answer. Your Answer: Question 2 (1 point) Suppose that a sample of size 68 is drawn from a population with mean 64 and standard deviation 46 . Find the value of , the standard deviation of the...
Consider a 30-year, $115,000 fixed-rate mortgage with a nominal annual rate of 4.75 percent. All payments...
Consider a 30-year, $115,000 fixed-rate mortgage with a nominal annual rate of 4.75 percent. All payments are made at the end of each month. What is the remaining balance on the mortgage after 5 years?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT