Question

Michael is interested in obtaining 30-year fixed mortgage rates in Myrtle Beach, SC. He obtained rate quotes from 66 lenders, and the APR rates that were quoted to him are given in the following table.

30-Year Fixed Mortgage Rates

Lender	APR (%)
EverBank	3.5063.506
AimLoan	3.6303.630
Great Western	4.0364.036
AuroraBank	4.2164.216
Quicken	4.1964.196
Roundpoint	4.0174.017

Step 3 of 3 :

Assuming the population standard deviation for the rates is 0.1%0.1%, calculate the value of χ2χ2. Round any intermediate calculations, if needed, to no less than six decimal places, and round your final answer to three decimal places.

Answer 1

Given :

30-Year Fixed Mortgage Rates

Lender	APR (%)
EverBank	3.506
AimLoan	3.630
Great Western	4.036
AuroraBank	4.216
Quicken	4.196
Roundpoint	4.017

Assuming the population standard deviation for the rates is 0.1%.

= 0.1

For the given data we calculate the standard deviation.

Therefore the value ofof χ2 is 44.106...(Try 44.105 if getting wrong)